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Section 105: Reasonable time

Negotiable Instruments Act • Official Statutory Text & Practice Guide

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Act 1881
Section 104 All 148 Sections of Negotiable Instruments Act Section 106

Legal Commentary & Landmark Judgments: Section 105

Section 105 provides statutory rules for determining 'reasonable time' for presentment, giving notice of dishonour, and noting, mandating regard to the nature of the instrument, distance, and commercial trade customs.

  • Commercial Standard of Reasonableness: Reasonable time is not an arbitrary period; it must be assessed based on the instrument's character and trade usage.
  • Public Holidays Excluded: In computing reasonable time, public holidays and non-business days are strictly excluded.
  • Distance & Communication Facilities: Takes into account the physical distance between parties and the speed of modern commercial communications.
Key Landmark Precedents:
  • Chartered Bank v. Dickson (1871) LR 3 PC 574: The Privy Council affirmed that reasonable time under Section 105 is an objective standard determined by prevailing commercial customs and banking practices.
  • Canara Bank v. Canara Sales Corporation (1987) 2 SCC 666: Discussed reasonable time in banking clearances and cheque processing under Section 105.
Courtroom Practice & Strategic Litigation Guidance:

When defending against an allegation of belated notice or delayed presentment, produce evidence of local banking hours, gazetted holidays, and electronic clearing cycles. Section 105 requires the court to evaluate reasonableness through commercial realities.

Section 104 All 148 Sections of Negotiable Instruments Act Section 106