Presentment of bills for acceptance (Section 61) - A bill of exchange is not necessarily required to be presented for acceptance, before its being presented for payment. For example, a bill payable on demand, payable certain number of days after date, payable on a certain day, etc., need not be presented for acceptance. Although it is a matter of common practice to obtain acceptance of the bill by the drawee at the earliest opportunity after it is drawn, such an acceptance is not absolutely essential to the bill being a negotiable instrument. For example, a person to whom a bill has been negotiated before acceptance may sue thereon as a holder in due course..
It should, however, be noted that in two cases presented for acceptance would be necessary, namely:
(i) Where a bill is payable after sight – presentment for acceptance is with a view to fixing the maturity of the instrument:
(ii) Where a bill expressly stipulates that it shall be presented for acceptance.
But when a bill is not payable after sight, presentment is unnecessary to render any prior party liable. It is, however, prudent for the holder of such bill to present it for acceptance, for if it is accepted, he obtains the security of the acceptor’s signature and if it is not accepted he is relieved of the necessary presentment for payment.
However, when and by whom bill is to be presented: A bill payable after sight is to be presented to the drawee by a person entitled to demand acceptance, and it is generally the holder of the bill who is entitled to demand acceptance. The bill must be presented by the holder within a reasonable time after it is drawn, and in business hours on a business day either at the residence or at the place of business of the drawee. But if the bill itself indicates a place of presentment, it must be presented at the place. If the drawee cannot, after reasonable search, be found, the bill is to be regarded as dishonoured for non –acceptance. When authorized by agreement of usage, a presentment through the post office by a registered letter is sufficient.
Drawee’s time for deliberation: Under Section 63, the drawee is entitled to a respite of forty eight hours ( exclusive of public holidays ) top consider whether he should accept a bill presented to him for acceptance.
When presentment is excused: Presentment for acceptance is excused if the drawee is a fictitious person (Section 91) or if he cannot, after reasonable search, be found (Section 61). Against even if presentment is made irregularly, such an irregularity is excused if the bill has been dishonoured by non-acceptance on some other ground.
It should, however, be noted that in two cases presented for acceptance would be necessary, namely:
(i) Where a bill is payable after sight – presentment for acceptance is with a view to fixing the maturity of the instrument:
(ii) Where a bill expressly stipulates that it shall be presented for acceptance.
But when a bill is not payable after sight, presentment is unnecessary to render any prior party liable. It is, however, prudent for the holder of such bill to present it for acceptance, for if it is accepted, he obtains the security of the acceptor’s signature and if it is not accepted he is relieved of the necessary presentment for payment.
However, when and by whom bill is to be presented: A bill payable after sight is to be presented to the drawee by a person entitled to demand acceptance, and it is generally the holder of the bill who is entitled to demand acceptance. The bill must be presented by the holder within a reasonable time after it is drawn, and in business hours on a business day either at the residence or at the place of business of the drawee. But if the bill itself indicates a place of presentment, it must be presented at the place. If the drawee cannot, after reasonable search, be found, the bill is to be regarded as dishonoured for non –acceptance. When authorized by agreement of usage, a presentment through the post office by a registered letter is sufficient.
Drawee’s time for deliberation: Under Section 63, the drawee is entitled to a respite of forty eight hours ( exclusive of public holidays ) top consider whether he should accept a bill presented to him for acceptance.
When presentment is excused: Presentment for acceptance is excused if the drawee is a fictitious person (Section 91) or if he cannot, after reasonable search, be found (Section 61). Against even if presentment is made irregularly, such an irregularity is excused if the bill has been dishonoured by non-acceptance on some other ground.
Presentment of promissory note for sight (Section 64): When and why a note is to be presented for sight? Like a bill of exchange payable after sight, a promissory note payable at a certain period after sight must be presented to the maker for sight. The presentment is to be made by a person entitled to demand payment who is usually the holder. Against, the note must be presented within a reasonable time after it is made and in business hours on a business day. In default of such presentment, the maker is not liable to pay anything to the holder. The necessity for presentment, in the case of such a note, viz., a note payable at a certain period after sight, is obvious; without such presentment the maturity of the note cannot be fixed.
What are the rules regarding presentation of Bills for Acceptance under Negotiable Instrument Act?
![What are the rules regarding presentation of Bills for Acceptance under Negotiable Instrument Act?]()
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