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 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
Presentment of promissory note for sight [Section 62]
The provision you're referring to, Section 62 of the Negotiable Instruments Act, deals with the
presentment of a promissory note that is payable at a certain period after sight:

1. Nature of the Promissory Note: A promissory note payable at a certain period after
sight is a note where the payment is due a specified time after the note is presented (or
'sighted') to the maker.
2. Requirement of Presentment for Sight: According to Section 62, when dealing with
such a promissory note, it must be presented to the maker for sight within a
reasonable time after it is made. This presentation must occur during the maker's
business hours on a business day.
3. Who Should Present the Note: The note should be presented for sight by a person
entitled to demand payment. This typically means the holder of the promissory note
or someone acting on their behalf.
4. Reasonable Time: The concept of reasonable time is crucial here. What constitutes a
reasonable time depends on the circumstances of each case, including the nature of
the note and the parties involved.
5. Consequences of Default in Presentment: If the promissory note is not presented for
sight within a reasonable time as per the provisions of Section 62, then no party to the
note is liable on it to the person making the default in presentment.

Example: Suppose Johny issues a promissory note payable 60 days after sight to Sarah.
Sarah receives the note on January 1, 2024. To comply with Section 62, Sarah must present
this note to John (the maker) for sight within a reasonable time after receiving it.

Let's say Sarah presents the note to John for sight on March 1, 2024. In this case, the
presentation might be considered late if the circumstances suggest that it should have been
done earlier. If John can show that the delay in presentment caused him harm (for example, by
affecting his financial planning), he might argue that he is no longer liable on the note due to
the default in presentment.

Therefore, it's essential to understand and comply with the requirements of Section 62 to
ensure the enforceability of promissory notes payable after sight. Presenting such a note in a
timely manner is crucial to maintain the obligations of the parties involved and avoid potential
disputes over liability.
Drawee's time for deliberation [Section 63]
The holder must, if so required by the drawee of a bill of exchange presented to him for
acceptance, allow the drawee 48 hours (exclusive of public holidays) to consider whether
he will accept it.
Presentment for payment [Section 64]
Section 64 of the Negotiable Instruments Act deals with the requirement of presentment for
payment of promissory notes, bills of exchange, and cheques.:
1. Presentment for Payment:
• According to Section 64, these negotiable instruments (promissory notes,
bills of exchange, and cheques) must be presented for payment to the
respective parties liable for payment:

Page | 1
 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
• Promissory note to the maker (the person who promised to pay).
• Bill of exchange to the acceptor (the person who accepted the bill).
• Cheque to the drawee (the bank on which the cheque is drawn).
2. Effect of Non-Presentment:
• If these instruments are not presented for payment as required by the Act,
the other parties (besides the one to whom the presentment should have
been made) are not liable to the holder of the instrument.
3. Presentment via Registered Post:
• Presentment for payment can be made through the post office by means
of a registered letter if authorized by agreement or usage. This method
provides a way to fulfill the presentment requirement without direct
physical delivery.
4. Exception for Promissory Notes Payable on Demand:
• If a promissory note is payable on demand and does not specify a
particular place of payment, no presentment is necessary to charge the
maker. The holder can demand payment immediately without presenting the
note.
Example: Suppose John issues a promissory note payable to Sarah on demand. The note
does not specify a particular place of payment. In this case:
• Scenario:
• Sarah, as the holder of the promissory note, wishes to collect payment from
John.
• Sarah can demand payment from John immediately without the need to
formally present the note to him.
Hours for presentment (Section 65)
Presentment for payment must be made during the usual hours of business, and, if at a
banker's within banking hours.
Presentment for payment of instrument payable after date or
sight (Section 66)
A promissory note or bill of exchange, made payable at a specified period after date or sight
thereof, must be presented for payment at maturity.

Maturity Date:
• The maturity date of the instrument is calculated based on the specified period after
the date of the instrument (e.g., 30 days after the date of the promissory note) or
after the sight of the instrument (e.g., 60 days after the acceptance of the bill of
exchange).

• Scenario:
• John issues a promissory note to Sarah on January 1, 2024, payable 60 days
after the date.

Page | 2
 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
• The promissory note matures on March 1, 2024 (60 days after January 1,
2024).
• Presentment for Payment:
• On March 4, 2024, Sarah, as the holder of the promissory note, presents the
note to John (the maker) for payment.
• Sarah is fulfilling the requirement of Section 66 by presenting the note for
payment on its maturity date.
• Result:
• John, as the maker of the promissory note, is obligated to make the payment
to Sarah upon proper presentment of the note at maturity.
• If Sarah fails to present the note for payment on its maturity date, she may
lose the right to hold John liable for the payment.
Presentment for payment of promissory note payable by
instalments (Section 67)
A promissory note payable by instalments must be presented for payment on the third
day after the date fixed for payment of each instalment; and non-payment on such
presentment has the same effect as non-payment of a note at maturity.
Presentment for payment of instrument payable at specified place
and not elsewhere (Section 68)
A promissory note, bill of exchange or cheque made, drawn or accepted payable at a
specified place and not elsewhere must, in order to charge any party thereto, be presented
for payment at that place.

Scenario:
• John issues a cheque to Sarah on January 1, 2024, drawn on ABC Bank and payable
at ABC Bank branch located at 123 Main Street, City A.

Presentment for Payment:

• To charge John (the drawer of the cheque) and ABC Bank (the drawee bank) with
liability for payment, Sarah, as the holder of the cheque, must present the cheque
for payment specifically at the ABC Bank branch located at 123 Main Street,
City A.
• Sarah cannot present the cheque for payment at any other location to hold John
and ABC Bank liable.
Result:
• If Sarah presents the cheque for payment at the specified ABC Bank branch location
on the cheque, and the cheque is dishonored (not paid due to insufficient funds,
etc.), she can take appropriate legal action against John and ABC Bank based
on the dishonor of the cheque.
Instrument payable at specified place (Section 69)
A promissory note or bill of exchange made, drawn or accepted payable at a specified place
must, in order to charge the maker or drawer thereof, be presented for payment at that
place.

Page | 3
 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
Presentment where no exclusive place specified (Section 70)
A promissory note or bill of exchange, not made payable as mentioned in sections 68 and
69, must be presented for payment at the place of business (if any) or at the usual
residence, of the maker, drawee or acceptor thereof, as the case may be.
Presentment when maker, etc., has no known place of business or
residence (Section 71)
If the maker, drawee or acceptor of a negotiable instrument has no known place of business
or fixed residence, and no place is specified in the instrument for presentment for
acceptance or payment, such presentment may be made to him in person wherever he
can be found.
Presentment of cheque to charge drawer (Section 72)
A cheque must, in order to charge the drawer, be presented at the bank upon which it is
drawn before the relation between the drawer and his banker has been altered to the
prejudice of the drawer.
Presentment of cheque to charge any other person (Section 73)
A cheque must, in order to charge any person except the drawer, be presented within a
reasonable time after delivery thereof by such person.
Presentment of instrument payable on demand (Section 74)
A negotiable instrument payable on demand must be presented for payment within a
reasonable time after it is received by the holder.
Presentment by or to agent, representative of deceased, or
assignee of insolvent (Section 75)
Presentment for acceptance or payment may be made to the duly authorised agent of the
drawee, maker or acceptor, as the case may be, or, where the drawee, maker or acceptor
has died, to his legal representative, or, where he has been declared an insolvent, to his
assignee.
Excuse for delay in presentment for acceptance or payment
(Section 75A)
Delay in presentment for acceptance or payment is excused if the delay is caused by
circumstances beyond the control of the holder, and not imputable to his default,
misconduct or negligence. When the cause of the delay ceases to operate, presentment
must be made within a reasonable time.
When presentment unnecessary (Section 76)
Section 76 of the Negotiable Instruments Act outlines situations where presentment for
payment is deemed unnecessary, and the instrument is considered dishonored at the due
date for presentment.

(a) Situations where Presentment is Unnecessary:

1. Intentional Prevention of Presentment:
• If the maker, drawee, or acceptor intentionally prevents the presentment of
the instrument.

Page | 4
 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
• Example: John, the maker of a promissory note, is aware of the due date for
payment but deliberately avoids being available or accessible to the holder
for presenting the note for payment.
2. Closure of Place of Business:
• If the instrument is payable at the maker's, drawee's, or acceptor's place of
business, and they close the place on a business day during usual business
hours.
• Example: Sarah's bill of exchange is payable at ABC Company's office, but
when Sarah attempts to present the bill for payment during business hours,
she finds the office closed intentionally.
3. Absence at Specified Place:
• If the instrument is payable at a specified place other than the maker's,
drawee's, or acceptor's place of business, and neither they nor any authorized
person attends at such place during usual business hours.
• Example: A cheque is payable at a specific bank branch, but when the payee
goes to the branch during business hours, no authorized person is available
to make payment.
4. Inability to Locate the Maker/Drawer/Acceptor:
• If the instrument is not payable at any specified place, and the maker, drawee,
or acceptor cannot be found after due search.
• Example: The payee tries to locate the drawer of a cheque for payment but
cannot find the drawer after reasonable efforts.
(b) Engaged to Pay Despite Non-Presentment:
• If any party to the instrument has engaged to pay the amount due regardless of
non-presentment.
• Example: The maker of a promissory note explicitly agrees to pay the amount due
on the note even if the note is not presented for payment at the due date.
(c) Waiver or Part Payment After Maturity:
• If, after maturity, a party with knowledge that the instrument has not been presented,
makes a part payment on account of the amount due, promises to pay the amount
due, or waives the right to take advantage of any default in presentment.
• Example: The acceptor of a bill of exchange, after the due date for presentment,
acknowledges the amount due and makes a partial payment towards the bill,
indicating a willingness to settle the remaining amount.
(d) Drawer Not Suffering Damage:
• If the drawer (issuer) of the instrument would not suffer any damage from the lack
of presentment.
• Example: The drawer issues a cheque knowing that it will not be presented for
payment promptly due to an understanding with the payee, and the drawer is not
negatively affected by the delay in presentment.

Page | 5
 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
Liability of banker for negligently dealing with bill presented for
payment (Section 77)
When a bill of exchange, accepted payable at a specified bank, has been duly presented
there for payment and dishonoured, if the banker so negligently or improperly keeps, deals
with or delivers back such bill as to cause loss to the holder, he must compensate the holder
for such loss.

1. Presentation for Payment at Specified Bank:

• Section 77 specifically applies when a bill of exchange is accepted payable at
a specified bank. This means that the drawee (the bank) is identified in the
bill as the place where payment should be made.
2. Duty of the Banker:
• When a bill of exchange is duly presented for payment at the specified bank
and the bank dishonors the bill (refuses to pay), the banker has a duty to
handle the bill with reasonable care and diligence.
3. Negligent or Improper Handling:
• If the banker negligently or improperly keeps, deals with, or delivers back the
bill of exchange in a manner that causes loss to the holder (the person
presenting the bill for payment), the banker becomes liable to compensate
the holder for such loss.

Scenario: Sarah holds a bill of exchange drawn by John, accepted by XYZ Bank, and payable
at XYZ Bank on a specified date.

Presentation and Dishonour:

• On the due date, Sarah presents the bill of exchange to XYZ Bank for payment as
specified in the bill.

Banker's Negligent Handling:

• The bank clerk at XYZ Bank mishandles the bill by misplacing it or delaying the
processing without valid reasons.

Resulting Loss to the Holder:

• Due to the bank's negligence, Sarah is unable to receive the payment on time,
resulting in financial loss (such as missing out on other business opportunities,
incurring additional costs, or facing legal consequences).
Rules for Compensation (Section 117)
The compensation payable in case of dishonour of promissory note, bill of exchange or
cheque, by any party liable to the holder or any endorsee, shall be determined by the
following rules:

(a) Amount Due to the Holder:

• The holder of the dishonoured instrument is entitled to receive the principal amount
due on the instrument, along with any expenses properly incurred in presenting,
noting, and protesting the instrument.

Page | 6
 CS LLM Arjun Chhabra
(Law Maven)
Mo: 62 62 62 143 8 / 9552 52 143 8
• Example: Sarah presents a bill of exchange to John for payment, but John fails to
pay. Sarah is entitled to claim the principal amount of the bill plus the expenses she
incurred in presenting, noting, and protesting the bill.

(b) Current Rate of Exchange:

• If the person liable resides at a place different from where the instrument was
payable, the holder is entitled to receive the payment at the current rate of exchange
between the two places.
• Example: If a bill of exchange drawn in one country is payable in another country,
the holder is entitled to receive the payment converted at the prevailing exchange
rate between the two countries.

(c) Compensation for Endorser:

• An endorser who pays the amount due on the instrument upon dishonour is entitled
to be reimbursed the amount paid, along with interest at 18% per annum from the
date of payment until the amount is recovered, plus all expenses caused by the
dishonour and payment.
• Example: If Sarah endorses a cheque and the drawer fails to honour it, Sarah pays
the amount of the cheque and is entitled to reimbursement of the principal amount,
interest, and related expenses.

(d) Current Rate of Exchange for Endorser:

• Similar to (b), if the person charged (the liable party) and the endorser reside at
different places, the endorser is entitled to receive reimbursement converted at the
current rate of exchange between their respective places of residence.
• Example: If an endorser residing in one country pays on behalf of the drawer
(residing in another country) upon dishonour, the endorser is entitled to
reimbursement converted at the prevailing exchange rate between the two
countries.

(e) Drawing a Bill for Compensation:

• The party entitled to compensation may draw a bill upon the party liable to
compensate, payable at sight or on demand, for the amount due, along with all
related expenses. If this bill is dishonoured, the party dishonouring the bill becomes
liable for compensation.
• Example: Sarah, entitled to compensation from John for a dishonoured bill, draws a
bill upon John for the amount due. If John fails to honour this drawn bill, he becomes
liable for compensation in the same manner as the original dishonoured bill.
Notary: The Central Government, for the whole or any part of India, and any State
Government, for the whole or any part of the State, may appoint as notaries any legal
practitioners or other persons who possess such qualifications as may be prescribed.
Functions of Notary Public in India:
1. Witnessing Signatures
2. Administering Oaths and Affirmations
3. Certifying Copies
4. Noting and Protest for Negotiable Instruments

Page | 7
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