Date and Time: Wednesday 23 February 2022 4:55:00 AM IST

Job Number: 164934272

Documents (7)

1. [s 99] Noting—
Client/Matter: -None-
2. [s 100] Protest—
Client/Matter: -None-
3. [s 101] Contents of protest—
Client/Matter: -None-
4. [s 102] Notice of protest—
Client/Matter: -None-
5. [s 103] Protest for non-payment after dishonour by non-acceptance.—
Client/Matter: -None-
6. [s 104] Protest of foreign bills—
Client/Matter: -None-
7. [[s 104A] When noting equivalent to protest.—
Client/Matter: -None-

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 [s 99] Noting—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

[s 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.

[s 99.1] Corresponding Provision

This section corresponds to section 51(1) of the Bills of Exchange Act, 1882.
 Page 2 of 2
[s 99] Noting—

[s 99.2] Noting

When a promissory note or bill of exchange is dishonoured, the holder can, after giving due notice of
dishonour, sue the drawer and the indorsers. The section provides a convenient method of
authenticating the fact of the dishonour. The holder may, if he so desires, adopt this method whereby
evidence of dishonour is secured. This is done by noting. The notary or his clerk proceeds to make a
formal demand upon the drawee or acceptor for acceptance or payment, as the case may be, and on
refusal, notes the bill.

‘Noting’ means the minute recording, by a notary public, on a dishonoured bill at the time of
dishonour. Under the section, such minute may be made upon the dishonoured instrument, or upon a
paper attached thereto, or partly upon each, and must contain the following particulars:1

(a) the fact of dishonour;

(b) the date of dishonour;
(c) the reason, if any, assigned for such dishonour;
(d) if the instrument has not been expressly dishonoured, the reasons why the holder treats it as
dishonoured; and
(e) the notary’s charges.

The notary should make the noting within a reasonable time after dishonour. Mere noting on the bill,
even if it shows the name of the notary in full, is not evidence of the presentment or the dishonour of
the bill.2

Noting is not compulsory in the case of an inland bill or note. The holder may or may not have the
instrument noted, and omission to do so does not in any way affect his rights thereon.

1 Sineximco Pvt Ltd v Dinesh International Pvt Ltd, (174) 2010 DLT 422 : 2010 Indlaw DEL 2950.

2 Bombay City Bank v Moonjee Hurridoss Bourke, (PC) Rep 274.

End of Document
 [s 100] Protest—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

[s 100] Protest—

When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment,
the holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary
public. Such certificate is called a protest.

Protest for better security.—When the acceptor of a bill of exchange has become insolvent, or his
credit has been publicly impeached, before the maturity of the bill, the holder may, within a
reasonable time, cause a notary public to demand better security of the acceptor, and on its being
refused may, within a reasonable time, cause such facts to be noted and certified as aforesaid. Such
certificate is called a protest for better security.

[s 100.1] Corresponding Provision

This section corresponds to section 51(2) and (5) of the Bills of Exchange Act, 1882.
 Page 2 of 3
[s 100] Protest—

[s 100.2] Protest

Protest is the formal notarial certificate attesting the dishonour of the bill and is based upon noting.
The special advantages of protest are:

(a) that it affords authentic and satisfactory evidence of dishonour to a drawer or indorser living
abroad, who would find it difficult to make inquiries of such dishonour, and would be
compelled to rely on the representations of the holder, and
(b) that under section 119, in a suit upon a dishonoured instrument, the court shall, on proof of
protest, presume the fact of dishonour unless and until disproved. Like noting, protest of
inland bills is not compulsory, and omission to have an instrument protested does not in any
way affect the holder’s rights thereon.

[s 100.2.1] Protest for Better Security

When the acceptor of a bill of exchange has become an insolvent, or has suspended payment, or his
credit has been publicly impeached before the bill matures, the holder may have the bill protested for
better security. A notary public is employed to demand better security and on its refusal, protest may
be made within a reasonable time. The acceptor, however, is not bound to give such security, neither
has the holder an immediate right of action against the drawer and the indorsers after such protest. The
holder has to wait till the maturity of the bill. The advantage of protest for better security beyond the
inherent one of having the circumstances placed on record for the information of the drawer and the
indorsers, is that it enables the bill to be accepted for honour.

In Sineximco Pvt Ltd v Dinesh International Pvt Ltd,3 it was held by Delhi High Court that the protest
must contain—

(a) either the instrument itself, or a literal transcript of the instrument and of everything written or
printed thereupon;
(b) the name of the person for whom and against whom the instrument has been protested;
(c) a statement that payment or acceptance, or better security, as the case may be, has been
demanded of such person by the notary public; the terms of his answer, if any, or a statement
that he gave no answer, or that he could not be found;
(d) when the note or bill has been dishonoured, the place and time of dishonour, and, when better
security has been refused, the place and time of refusal;
(e) the subscription of the notary public making the protest;
 Page 3 of 3
[s 100] Protest—

(f) in the event of an acceptance for honour or of a payment for honour, the name of the person by
whom, of the person [for] whom, and the manner in which, such acceptance or payment was
offered and effected.

3 Sineximco Pvt Ltd v Dinesh International Pvt Ltd, (174) 2010 DLT 422 : 2010 Indlaw DEL 2950 : 2010 (120) DRJ 416 : 2011 (2)
RCR (Civil) 635.

End of Document
 [s 101] Contents of protest—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

[s 101] Contents of protest—

A protest under section 100 must contain—

(a) either the instrument itself, or a literal transcript of the instrument and of everything written or
printed thereupon;
(b) the name of the person for whom and against whom the instrument has been protested;
(c) a statement that payment or acceptance, or better security, as the case may be, has been
demanded of such person by the notary public; the terms of his answer, if any, or a statement
that he gave no answer, or that he could not be found;
(d) when the note or bill has been dishonoured, the place and time of dishonour, and, when better
security has been refused, the place and time of refusal;
(e) the subscription of the notary public making the protest;
(f) in the event of an acceptance for honour or of a payment for honour, the name of the person by
whom, of the person for whom, and the manner in which, such acceptance or payment was
offered and effected.
 Page 2 of 2
[s 101] Contents of protest—

4[A notary public may make the demand mentioned in clause (c) of this section either in person or by
his clerk or, where authorised by agreement or usage, by registered letter.]

[s 101.1] Corresponding Provision

This section corresponds to section 51(7) of the Bills of Exchange Act, 1882.

[s 101.2] Contents of Protest

A protest, to be valid, must contain the following particulars,5 omission of one or more of which, will
render the protest invalid:

(i) The instrument or a transcript of the instrument.

(ii) The protest must mention the names of the parties for and against whom the instrument has
been protested.
(iii) The fact of and the reason for dishonour. The protest must state not only that demand for
payment, acceptance or better security has been made, but also the reason given by the drawee
for dishonour or for refusal to give better security. If the drawee gave no answer to the demand
or if he could not be found, that fact must be stated in the protest.
(iv) The place and time of dishonour.
(v) The signature of the notary.
(vi) Certain particulars in the case of acceptance for honour and payment for honour. In the event
of an acceptance for honour or a payment for honour, the name of the person by whom, or the
person for whom, and the manner in which such acceptance or payment was offered and
effected must be stated in the protest.

4 Added by Act 2 of 1885, section 5.

5 Sineximco Pvt Ltd v Dinesh International Pvt Ltd, (174) 2010 DLT 422 : 2010 Indlaw DEL 2950 : 2010 (120) DRJ 416 : 2011 (2)
RCR (Civil) 635 .

End of Document
 [s 102] Notice of protest—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

[s 102] Notice of protest—

When a promissory note or bill of exchange is required by law to be protested, notice of such protest
must be given instead of notice of dishonour, in the same manner and subject to the same conditions;
but the notice may be given by the notary public who makes the protest.

[s 102.1] Notice of Protest

Notice of protest is simply notice of dishonour plus the intimation that the bill has been protested as
required by law. Notice of protest is necessary to fix the liability of the parties on an instrument that
requires to be protested. The drawer and the indorsers require notice in order to protect their own
interests, just as much when the bill has been protested as when it has not been. Accordingly, the
section provides that where notes and bills are required to be protested, notice of protest must be given
instead of notice of dishonour. Such notice of protest, however, may be given by the notary public or
by the holder. The rules as to giving notice of protest are the same as those applying to notice of
 Page 2 of 2
[s 102] Notice of protest—

dishonour. Thus, a notice of protest may be waived in the same way as a notice of dishonour either by
expressly dispensing with it or by a subsequent promise to pay the amount of money due under the
instrument.

The object of notice is not to demand payment, but to warn the party of liability and in case of drawer
to enable him to protect him as against the drawee or acceptor who has dishonoured the instrument.6

6 Sineximco Pvt Ltd v Dinesh International Pvt Ltd, (174) 2010 DLT 422 : 2010 Indlaw DEL 2950.

End of Document
 [s 103] Protest for non-payment after dishonour by non-acceptance.—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

[s 103] Protest for non-payment after dishonour by non-acceptance.—

All bills of exchange drawn payable at some other place than the place mentioned as the residence of
the drawee, and which are dishonoured by non-acceptance, may, without further presentment to the
drawee, be protested for non-payment, in the place specified for payment, unless paid before or at
maturity.

[s 103.1] Corresponding Provision

This section corresponds to section 51(6)(b) of the Bills of Exchange Act, 1882.

[s 103.2] Scope of the Section

The section provides that where a bill payable at a place other than the residence of the drawee is
 Page 2 of 2
[s 103] Protest for non-payment after dishonour by non-acceptance.—

dishonoured by non-acceptance, it need not be presented again for payment. Such a bill can be
protested for non­payment at the place specified for payment, unless it is paid before or at maturity.
For example, a bill is drawn on C in Calcutta and is payable in Mumbai. The bill is dishonoured by
non-acceptance. It may be protested in Mumbai for non-payment without being presented again to C
in Calcutta.

End of Document
 [s 104] Protest of foreign bills—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

[s 104] Protest of foreign bills—

Foreign bills of exchange must be protested for dishonour when such protest is required by the law of
the place where they are drawn.

[s 104.1] Corresponding Provision

This section corresponds to section 51(2) of the Bills of Exchange Act, 1882.

[s 104.2] Protest of Foreign Bills

The section requires protest of foreign bills,7 where such protest is necessary by the law of the place
where they are drawn.
 Page 2 of 2
[s 104] Protest of foreign bills—

The practical effect of the section, as regards proceedings in India, will be that all bills drawn out of
India must be protested, for under the law of most countries a protest is made essential in case of
dishonour of a bill. Protest is absolutely necessary in the case of foreign bill, and the courts do not
allow any other evidence of dishonour except the evidence of protest. However, a foreign bill drawn in
India need not be protested notwithstanding that protest may be required by the law of the place where
it is payable. The section does not apply to foreign promissory notes. It has been held that a bill drawn
upon a resident in India is an inland bill for which no protest is necessary and the fact that the bill was
drawn out of India does not make it a foreign bill.8 It is, however, submitted that this decision does
not appear to reflect the law correctly.9

However, a bill drawn upon a resident in British India is an inland bill for which no protest is
necessary. The fact that the bill was drawn out of British India does not make it a foreign bill.10

7 As to what are foreign bills, see sections 11 and 12.

8 AG Kidston & Co Ltd v Seth Bros, AIR 1930 Cal 692 .

9 See also, the Bills of Exchange Act, 1882, section 4.

10 AG Kidston & Co Ltd v Seth Brothers, AIR 1930 Cal 692 .

End of Document
 [[s 104A] When noting equivalent to protest.—
Khergamvala: The Negotiable Instruments Act, 23rd Edn
Khergamvala P Krishna Kumar & S Abdul Khader Kunju

Khergamvala: The Negotiable Instruments Act, 23rd Edn > Khergamvala: The Negotiable Instruments Act,
23rd Edn > THE NEGOTIABLE INSTRUMENTS ACT, 1881 > PART I GENERAL > CHAPTER 9 OF
NOTING AND PROTEST

THE NEGOTIABLE INSTRUMENTS ACT, 1881

PART I GENERAL

THE NEGOTIABLE INSTRUMENTS ACT 1881

(Act XXVI of 1881)

[9th December 1881]

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

PREAMBLE

Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and
cheques;

It is hereby enacted as follows:

CHAPTER 9 OF NOTING AND PROTEST

11[[s 104A] When noting equivalent to protest.—

For the purposes of this Act, where a bill or note is required to be protested within a specified time or
before some further proceeding is taken it is sufficient that the bill has been noted for protest before
the expiration of the specified time or the taking of the proceeding; and the formal protest may be
extended at any time thereafter as of the date of the noting.]

[s 104A.1] Corresponding Provision

This section corresponds to section 93 of the Bills of Exchange Act, 1882.

[s 104A.2] Scope of the Section

The noting of a bill is in fact an incipient protest and it must take place within the time allowed by
 Page 2 of 2
[[s 104A] When noting equivalent to protest.—

law. The protest, however, is an amplification of the noting. The notary, after he has made his minute,
may draw up the formal protest at his leisure. The section provides that whenever protest is required to
be made within a specified time, it is sufficient if noting be made within that time, though the formal
protest may be drawn up later on. When protest is drawn up, it relates back to the date of noting. Thus,
under the section, if a bill is properly presented and noted at the time, the notary may make the protest
at any time in future.

11 Ins. by Act 2 of 1885, section 6.

End of Document