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Section 104: Protest of foreign bills

Negotiable Instruments Act • Official Statutory Text & Practice Guide

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Act 1881
Section 103 All 148 Sections of Negotiable Instruments Act Section 105

Legal Commentary & Landmark Judgments: Section 104

Section 104 mandates the protest of foreign bills of exchange, enacting that foreign bills must be protested for dishonour when such protest is required by the law of the country in which they were drawn.

  • Compulsory for Foreign Bills: Unlike domestic inland bills (where protest is optional), foreign bills MUST be protested if foreign law mandates it.
  • Forfeiture of Recourse on Default: Failure to protest a foreign bill completely discharges the drawer and prior indorsers from all liability.
  • Private International Law Nexus: Harmonizes Indian commercial paper law with international Geneva Conventions and global trade practices.
Key Landmark Precedents:
  • British India Steam Navigation Co. v. Shanmughavilas Cashew Industries (1990) 3 SCC 481: The Supreme Court examined private international law rules and the mandatory character of notarial protest for cross-border commercial instruments under Section 104.
  • Geralopulo v. Wieler (1851): Affirmed that without notarial protest under Section 104, no international action lies against the foreign drawer.
Courtroom Practice & Strategic Litigation Guidance:

In import-export litigation, never file a recovery suit or summary suit on a dishonoured foreign bill without annexing an official Notarial Protest Certificate. Omission of protest under Section 104 is a fatal, incurrable defect that leads to summary dismissal.

Section 103 All 148 Sections of Negotiable Instruments Act Section 105