Section 99 NI Act: Noting
Negotiable Instruments Act, 1881
Section 99 NI Act at a Glance
Section 99 NI Act allows the holder of a dishonoured promissory note or bill of exchange to have the dishonour noted by a notary public. The note must be made within a reasonable time and record the dishonour date, reason, and notary's charges.
Section 99 NI Act Bare Act Text
99. Noting.
When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or upon a paper attached thereto, or partly upon each.
Such note must be made within a reasonable time after dishonour, and must specify the date of dishonour, the reason, if any, assigned for such dishonour, or, if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, and the notary's charges.
Section 99 NI Act in Simple Words
Section 99 NI Act sets out the procedure of noting when a promissory note or a bill of exchange has been dishonoured by non-acceptance or by non-payment. In that situation, the holder may cause the dishonour to be noted by a notary public upon the instrument, upon a paper attached to the instrument, or partly upon each.
The second paragraph of Section 99 NI Act sets out when the note must be made and what it must contain. The note must be made within a reasonable time after dishonour.
The note must specify the date of dishonour, the reason (if any) assigned for such dishonour, or, if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, along with the notary's charges.
When Section 99 NI Act Applies
- A promissory note or a bill of exchange has been dishonoured by non-acceptance or by non-payment.
- The holder may cause the dishonour to be noted by a notary public upon the instrument, upon a paper attached to it, or partly upon each.
- The note must be made within a reasonable time after dishonour.
- The note must specify the date of dishonour.
- The note must specify the reason, if any, assigned for the dishonour, or if not expressly dishonoured, the reason why the holder treats it as dishonoured.
- The note must specify the notary's charges.
Example of Section 99 NI Act
FAQs on Section 99 NI Act
What is Section 99 NI Act?▼
Section 99 NI Act explains the noting of a promissory note or bill of exchange that has been dishonoured by non-acceptance or non-payment. It allows the holder to have a notary public record the dishonour, including the date, reason, and notary's charges, within a reasonable time.
Where is the noting recorded under Section 99 NI Act?▼
Upon the instrument itself, upon a paper attached to the instrument, or partly upon each. Section 99 NI Act allows the notary public to make the note in any of these places.
What information must a noting specify under Section 99 NI Act?▼
The note must specify the date of dishonour, the reason (if any) assigned for the dishonour, and the notary's charges. If the instrument has not been expressly dishonoured, the note must specify the reason why the holder treats it as dishonoured.
When must noting be done under Section 99 NI Act?▼
Within a reasonable time after dishonour. Section 99 NI Act requires the note to be made within a reasonable time after the promissory note or bill of exchange has been dishonoured.
Does Section 99 NI Act cover cheques?▼
No. Section 99 NI Act applies only when a promissory note or a bill of exchange has been dishonoured by non-acceptance or non-payment.
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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·