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Section 18: Where amount is stated differently in figures and words

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 17 All 148 Sections of Negotiable Instruments Act Section 19

Legal Commentary & Landmark Judgments: Section 18

Section 18 resolves discrepancies in monetary amounts, enacting that where the sum payable is expressed differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid.

  • Primacy of Words Over Figures: Establishes a conclusive statutory rule that words prevail over numerical digits in cases of conflict.
  • Prevention of Fraudulent Tampering: Guards against unilateral alteration, as figures are far easier to alter (e.g., adding a zero) than written words.
  • Absence of Words: If the amount is stated only in figures, Section 18 does not cure ambiguity if the figures themselves are uncertain or altered.
Key Landmark Precedents:
  • Saunder v. Piper (1839) 5 Bing NC 425: The landmark ruling establishing that where words and figures differ on a commercial bill, the words govern the legal obligation conclusively.
  • Dhana Reddi v. Subba Reddi: Held that oral evidence is inadmissible to contradict the sum stated in words when the instrument is complete and unambiguous on its face.
Courtroom Practice & Strategic Litigation Guidance:

In cheque dishonour cases where a numerical typo occurred in figures but the written words represent the correct debt amount, the cheque remains legally valid for the sum written in words. The drawee bank is bound to honour or dishonour based on the words.

Section 17 All 148 Sections of Negotiable Instruments Act Section 19