Legal World

Section 135 NI Act — Law of place of payment governs dishonour

The Negotiable Instruments Act, 1881 · Official PDF page 27

Open in NyayaOfficial PDF, page 27

135. Law of place of payment governs dishonour. —Where a promissory note, bill of exchange or cheque is made payable in a different place from that in which it is made or indorsed, the law of the place where it is made payable determines what constitutes dishonour and wh at notice of dishonour is sufficient.

Illustration A bill of exchange drawn and indorsed in 3[India], but accepted payable in France, is dishonoured. The indorsee causes it to be protested for such dishonour, and gives notice thereof in accordance with the law of France, though not in accordance with the rules herein contained in respect of bills which are not foreign. The notice is sufficient.

Text extracted from the official PDF (India Code source copy; consolidation date not certified). Line breaks and footnote marks may differ; the PDF is the authority.

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