Home  /  Negotiable Instruments Act  /  Section 21

Section 21: At sight, On presentment, After sight

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 20 All 148 Sections of Negotiable Instruments Act Section 22

Legal Commentary & Landmark Judgments: Section 21

Section 21 defines the commercial terms 'at sight', 'on presentment', and 'after sight', standardizing maturity calculations across bills of exchange and promissory notes.

  • 'At Sight' & 'On Presentment': Mean that the instrument is payable immediately upon demand when exhibited to the maker or drawee.
  • 'After Sight' in Bills of Exchange: Means after the bill has been exhibited to the drawee for acceptance, establishing the baseline date for computing maturity.
  • 'After Sight' in Promissory Notes: Means after the note has been exhibited for sight to the maker by a person entitled to demand payment.
Key Landmark Precedents:
  • Ramanathan Chettiar v. Ramanathan Chettiar (AIR 1968 SC 1047): The Supreme Court examined the legal meaning of 'after sight', holding that sight requires actual physical exhibition of the commercial paper to the debtor.
  • Holmes v. Kerrison (1810): Established that on a note payable after sight, limitation does not commence until the instrument has been formally presented for sight to the maker.
Courtroom Practice & Strategic Litigation Guidance:

When drafting international bills or high-value trade acceptances payable 'after sight', always ensure the drawee writes the date of sighting alongside their acceptance signature. Without an explicit acceptance date, computing the maturity date becomes a contentious evidentiary dispute.

Section 20 All 148 Sections of Negotiable Instruments Act Section 22