Negotiable Instruments Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 22 of Negotiable Instruments Act: Maturity
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
The maturity of a promissory note or bill of exchange is the date at which it falls due.
Days of grace. Every promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
Section 22 defines the 'maturity' of a promissory note or bill of exchange as the date at which it falls due, and establishes the mandatory addition of three days of grace to every instrument not expressed to be payable on demand, at sight, or on presentment.
Three Days of Grace: Every time-bill and time-note is entitled to three days of grace added to the nominal maturity date.
Exclusion of Demand Instruments: Cheques and demand instruments are strictly excluded; days of grace never apply to cheques under Section 138.
Cause of Action Timing: An action cannot be instituted until the expiration of the full third day of grace; premature suits are dismissed as without cause of action.
Key Landmark Precedents:
Kushal Chand v. Puran Mal: Held that the three days of grace are a statutory right of the debtor; a suit filed before the expiry of the third grace day is prematurely instituted.
Pratapsingh v. Raghunathdas: Affirmed that commercial custom cannot contract out of Section 22 statutory grace days unless the instrument explicitly says 'without grace'.
Courtroom Practice & Strategic Litigation Guidance:
In summary suits on time-bills under Order XXXVII CPC, verify that the 3 days of grace have fully elapsed before issuing summons. However, for cheque bounce under Section 138, days of grace are completely irrelevant.
Legal Commentary & Landmark Judgments: Section 22
Section 22 defines the 'maturity' of a promissory note or bill of exchange as the date at which it falls due, and establishes the mandatory addition of three days of grace to every instrument not expressed to be payable on demand, at sight, or on presentment.
In summary suits on time-bills under Order XXXVII CPC, verify that the 3 days of grace have fully elapsed before issuing summons. However, for cheque bounce under Section 138, days of grace are completely irrelevant.