//
 
[Home] [Act List]  
 
THE NEGOTIABLE INSTRUMENTS ACT, 1881

(ACT NO. XXVI OF 1881).
  Part No : Chapter No : Section No: [ 9th December, 1881  
  
     1 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:-
 
CONTENTS
 
SECTIONS
 
CHAPTER I
PRELIMINARY
1. Short title
Local extent Saving of usages relating to hundis, etc. Commencement
1A. Application of the Act
2. [Repealed]
3. Interpretation-clause.
CHAPTER II
OF NOTES, BILLS AND CHEQUES
4. “Promissory note”
5. “Bill of exchange”
6. “Cheque”
7. “Drawer” “Drawee” “Drawee in case of need” “Acceptor” “Acceptor for honour” “Payee”
8. “Holder”
9. “Holder in due course”
10. “Payment in due course”
11. Inland instrument
12. Foreign instrument
13. “Negotiable instrument”
14. Negotiation
15. Indorsement
16. Indorsement “in blank” and “in full” “Indorsee”
17. Ambiguous instruments
18. Where amount is stated differently in figures and words
19. Instruments payable on demand.
20. Inchoate stamped instruments
21. “At sight” “On presentment” “After sight”
21A. When note or bill payable on demand is overdue
21B. A note or bill payable at a determinable future time
21C. Anti-dating and post-dating
22. “Maturity” Days of grace
23. Calculating maturity of bill or note payable so many months after date or sight
24. Calculating maturity of bill or note payable so many days after date or sight
25. When day of maturity is a holiday
CHAPTER III
PARTIES TO NOTES, BILLS AND CHEQUES
26. Capacity to make, etc., promissory notes, etc.
Where such an instrument is made, drawn
27. Agency
27A. Authority of partner
28. Liability of agent signing
28A. Transferor by delivery and transferee
29. Liability of legal representative signing
29A. Signature essential to liability
29B. Forged or unauthorised signature
29C. Stranger signing instrument presumed to be indorser
30. Liability of drawer
31. Liability of drawee of cheque
32. Liability of maker of note and acceptor of bill
33. Only drawee can be acceptor except in need or for honour
34. Acceptance by several drawees not partners
35. Liability of indorser
36. Liability of prior parties to holder in due course
37. Maker, drawer and accept or principals
38. Prior party a principal in respect of each subsequent party
38A. Liability of accommodation party and position of accommodation party
39. Suretyship
40. Discharge of indorser’s liability
41. Acceptor bound although indorsement forged
42. Acceptance of bill drawn in fictitious name
43. Negotiable instrument made, etc., without consideration
44. Partial absence or failure of money-consideration
45. Partial failure of consideration not consisting of money
45A. Holder’s right to duplicate of lost bill
PART IV
OF NEGOTIATION
46. Delivery
47. Negotiation by delivery
48. Negotiation by indorsement
49. Conversion of indorsement in blank into indorsement in full
50. Effect of indorsement
51. Who may negotiate
52. Indorser who excludes his own liability or makes it conditional
53. Holder claiming through holder in due course
53A. Rights of holder in due course
54. Instrument indorsed in blank
55. Conversion of indorsement in blank into indorsement in full
56. Requisites of indorsement
57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased
57A. Negotiation of instrument of party already liable thereon
57B. Rights of holder
58. Defective title
59. Instrument acquired after dishonour or when overdue
Accommodation note or bill
60. Instrument negotiable till payment or satisfaction
CHAPTER V
OF PRESENTMENT
61. Presentment for acceptance
62. Presentment of promissory note for sight
63. Drawee’s time for deliberation
64. Presentment for payment
65. Hours for presentment
66. Presentment for payment of instrument payable after date or sight
67. Presentment for payment of promissory note payable by instalments
68. Presentment for payment of instrument payable at specified place and not elsewhere
69. Instrument payable at specified place
70. Presentment where no exclusive place specified
71. Presentment when maker, etc., has no known place of business or residence
71A. What constitutes valid presentment and mode of presentment
72. Presentment of cheque to charge drawer
73. Presentment of cheque to charge any other person
74. Presentment of instrument payable on demand
75. Presentment by or to agent, representative of deceased, or assignee of insolvent
75A. Excuse for delay in presentment for acceptance or payment
76. When presentment unnecessary
77. Liability of banker for negligently dealing with bill presented for payment
CHAPTER VI
OF PAYMENT AND INTEREST
78. To whom payment should be made
79. Interest when rate specified or not specified
80. Interest when no rate specified
81. Delivery of instrument on payment, or indemnity in case of loss
CHAPTER VII
OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
82. Discharge from liability-
(a) by cancellation
(b) by release
(c) by payment
83. Discharge by allowing drawee more than forty-eight hours to accept
84. When cheque not duly presented and drawer damaged thereby
85. Cheque payable to order
85A. Drafts drawn by one branch of a bank on another payable to order
86. Parties not consenting discharged by qualified or limited acceptance
87. Effect of material alteration
Alteration by indorsee
88. Acceptor or indorser bound notwithstanding previous alteration
89. Payment of instrument on which alteration is not apparent
90. Extinguishment of rights of action on bill in acceptor’s hands
CHAPTER VIII
OF NOTICE OF DISHONOUR
91. Dishonour by non-acceptance
92. Dishonour by non-payment
93. By and to whom notice should be given
94. Mode in which notice may be given
95. Party receiving must transmit notice of dishonour
96. Agent for presentment
97. When party to whom notice given is dead
98. When notice of dishonour is unnecessary
CHAPTER IX
OF NOTING AND PROTEST
99. Noting
100. Protest
Protest for better security
101. Contents of protest
102. Notice of protest
103. Protest for non-payment after dishonour by non-acceptance
104. Protest of foreign bills
104A. When noting equivalent to protest
CHAPTER X
OF REASONABLE TIME
105. Reasonable time
106. Reasonable time of giving notice of dishonour
107. Reasonable time for transmitting such notice
CHAPTER XI
OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
108. Acceptance for honour
109. How acceptance for honour must be made
110. Acceptance not specifying for whose honour it is made
111. Liability of acceptor for honour
112. When acceptor for honour may be charged
113. Payment for honour
114. Right of payer for honour
115. Drawee in case of need
116. Acceptance and payment without protest
CHAPTER XII
OF COMPENSATION
117. Rules as to compensation
CHAPTER XIII
SPECIAL RULES OF EVIDENCE
118. Presumptions as to negotiable instruments- (a) of consideration; (b) as to date; (c) as to time of acceptance; (d) as to time of transfer; (e) as to order of indorsements; (f) as to stamp; (g) that holder is a h
119. Presumption on proof of protest
120. Estoppel against denying original validity of instrument
121. Estoppel against denying capacity of payee to indorse
122. Estoppel against denying signature or capacity of prior party
CHAPTER XIV
SPECIAL PROVISIONS RELATING TO CHEQUES
122A. Revocation of Banker’s authority
123. Cheque crossed generally
123A. Cheque crossed “account- payee”
124. Cheque crossed specially
125. Crossing after issue
125A Crossing a material part of a cheque
126. Payment of cheque crossed generally
Payment of cheque crossed specially
127. Payment of cheque crossed specially more than once.
128. Payment in due course of crossed cheque
129. Payment of crossed cheque out of due course
130. Cheque bearing “not negotiable”
131. Non-liability of banker receiving payment of cheque
131A. Application of Chapter to drafts
131B. Protection to banker crediting cheque crossed “account- payee”
131C. Cheque not operating as assignment of funds
CHAPTER XV
SPECIAL PROVISIONS RELATING TO BILLS OF EXCHANGE
131D.Several drawees
131E. In whose favour a bill may be drawn
131F. When presentment for acceptance is necessary
131G. When presentment excused
131H. Holder’s right of recourse against drawn and indorsers
131-I. Holder may refuse qualified acceptance
132. Set of bills
133. Holder of first acquired part entitled to all
CHAPTER XVI
OF INTERNATIONAL LAW
134. Law governing liability of parties to a foreign instrument
135. [Omitted]
136. Instrument made, etc., outside Bangladesh, but in accordance with their law
137. Presumption as to foreign law
2CHAPTER XVII
ON PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS
138. Dishonour of cheque for insufficiency, etc., of funds in the account
138A. Restriction in respect of appeal
139. [Omitted]
140. Offences of Companies
141. Cognizance of offences
 
 

Copyright © 2010, Legislative and Parliamentary Affairs Division
Ministry of Law, Justice and Parliamentary Affairs