Chapter – 6 

Chapter – 6   Of Notice of Dishonour
64. Dishonour by Non-Acceptance:

(1) A Bill of Exchange shall be deemed to be dishonoured by non-acceptance when the Drawee, or one  of several Drawees not being partners, makes default in acceptance upon being duly required to accept the bill.
(2) If agreed to accept the bill with conditions or the Drawee is incompetent to contract, the Bill of Exchange shall be deemed to be
dishonoured.

65. Dishonour by Non-Payment: A Promissory Note, Bill of Exchange or Cheque shall be deemed to be dishonoured by non-payment when the
maker of the note, accepter of the bill or Drawee of the Cheque makes default in payment upon being duly required to pay the same.

66. Notice of Dishonour: When a Bill of Exchange is dishonoured by non- acceptance or non-payment, the Holder thereof, or some party thereto
who remains liable thereon, must give notice to all other parties related to such instrument, and if any party among them has not been noticed,
such party shall not be liable to that instrument.
Provided that, nothing in this section renders it necessary to give notice of dishonour to the maker of the Promissory Note, acceptor of the
Bill of Exchange or the Drawee.

67. Mode in which Notice May be Given: Notice of dishonour may be given to a person to whom it is required to be given or to his/her duly
authorized agent or, where he/she has died, to his/her heir, may be oral or written. While giving written notice, it can be sent by post and may
be in any form. In such notice it must be informed to the party to whom it is given, either in express terms or reasonable intendment, that the
Negotiable Instrument has been dishonoured and he /she will be held liable thereon and it must be given within reasonable time, at his place
of business or residence. If the notice is duly directed and sent by post  and miscarries, such miscarriage does not render the notice invalid.

68. The Agent to Have Time to Give Notice of Dishonour: When the Negotiable Instrument is deposited with an agent for presentment, the
agent is entitled to give notice to the concerned principal party as if he were the Holder giving notice of dishonour.

69. When Party to Whom Notice Given is Dead: When the party to whom notice of dishonour is despatched is dead, and the party
despatching the notice is ignorant of his/her death, the notice shall not be invalid.

70. When Notice of Dishonour is Unnecessary: No notice of dishonour is necessary in the following conditions:-
(a) When it is dispensed with by the party entitled thereto,
(b) When the Drawer has countermanded payment,
(c) When the party has not suffered damage for want of notice,
(d) When the acceptor is also a Drawer,
(e) In the case of a Promissory Note which is not negotiable.
(f) When the party entitled to notice cannot after due search be found, or the party bound to give notice, is for any other reason,
unable without any fault of his/her own to give it,
(g) When the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the Negotiable
Instrument.

71. The Facts of Dishonour Can be Caused to be Noted by Notary Public: When a Negotiable Instrument has been dishonoured by non-
payment or non-acceptance, the Holder may complain such dishonour  to the Notary Public within a resonable time and may cause to be noted
the particulars of dishonour by the Notary Public upon the instrument, or upon a paper attached thereto. The date of dishonour and the reason
assigned for such dishonour must be specified while causing to note and if the instrument has not been expressly dishonoured, the reason why
the Holder treats it as dishonoured also shall have to be expressed clearly.

72. The Facts of Dishonour May be Taken by Certifying it: The Holder may take the facts of dishonour to be certified by the Notary public after
it is noted pursuant to Section 71.

73. Protest For Additional Security: When the acceptor of a Bill of Exchange has become insolvent, before the Maturity of the Bill of
Exchange, the Holder may, within ta reasonable time, cause a Notary Public to demand additional security of the acceptor and on its being
refused may, within a reasonable time, cause such facts to be noted and  certified.

74. Contents of Protest: The protest in relation to dishonour or refusal for additional security must contain the following particulars:-
(a) The Negotiable Instrument or its duplicate 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 additional 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 Negotiable Instrument has been dishonoured, the place and time of dishonour, and when additional security has
been refused, the place and time of refusal.

75. Notice of Protest: When a Negotiable Instrument is required by any prevailing law to be protested, notice of such protest must be given
instead of notice of dishonour. The notice may be given by the Notary Public also who makes the protest.

76. 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 the payment.

77. Protest of Foreign Bills of Exchange: Foreign Bills of Exchange must be protested for dishonour when such protest is required by the law of
the country where they are drawn, the protest of dishonour of such Bills of Exchange also must be caused by the Notary Public