What does Presentment of instrument for payment means?

Presentment of instrument for payment: Presentment of a bill of exchange means it exhibition to drawee or acceptor by holder with a request for payment in Accordance With Its Apparent Tenor (section 64). Presentment may be made through post by means of a registered letter if such a mode of presentment is authorized by agreement or usage. If registered letter if such a mode of presentment is authorized by agreement or usage. If the bill is paid, the holder would have to hand it over to the payer. In default of the bill is paid, the holder would have to hand it over to the payer. In default of presentment, the drawer and the endorser would be discharged form their liability to the holder.

Few Important points must be clear about presentation

(i) By whom and to whom presentment is to be made

(ii) Time of presentment for payment:

(iii) Place of presentment for payment:

(iv) Presentment of promissory note payable by installment (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.

(v) Presentment of cheque to drawer (Section 72):

If the holder does not present the cheque at the bank in time, the position of the bank may become unsound and it may not be possible for the banker to honour the cheque; in this case, the drawer is not liable if the bank refuses payment on present­ment. The rule is that the cheque must be presented before the relation between the drawer and his banker has been altered to the prejudice of the drawer.

(vi) Distinction between drawer of bills and drawer of cheque:

(vii) Presentment of cheque to charge any other person (Section 73) :

(viii)Presentment of instrument to agents, etc. (Section 75):