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Section 19: Instruments payable on demand

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1881
Section 18 All 148 Sections of Negotiable Instruments Act Section 20

Legal Commentary & Landmark Judgments: Section 19

Section 19 defines instruments 'payable on demand', enacting that a promissory note or bill of exchange in which no time for payment is specified, and any cheque, is payable on demand.

  • Absence of Stated Maturity: Whenever a bill or note omits a maturity date, it is legally payable immediately upon demand.
  • Cheques Always on Demand: Every cheque is by definition payable on demand, precluding any requirement of advance notice before presentment.
  • Limitation Triggers: The statutory period of limitation for a promissory note payable on demand begins to run from the date of the instrument, not from the date of demand.
Key Landmark Precedents:
  • Venkatasubba Rao v. Asiatic Steam Navigation Co.: Affirmed that an instrument without an explicit date of maturity is legally payable immediately, triggering commercial presentment rules.
  • Ram Sarup v. Hardeo Prasad: Held that on a demand promissory note, the debt is due from the very moment of execution; no separate formal demand is a condition precedent to instituting a civil suit.
Courtroom Practice & Strategic Litigation Guidance:

Be cautious of limitation on demand promissory notes. Under Article 35 of the Limitation Act, 1963, the 3-year limitation clock begins running on the date the note is executed, regardless of whether a demand notice was issued.

Section 18 All 148 Sections of Negotiable Instruments Act Section 20