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Section 25: When day of maturity is a holiday

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 24 All 148 Sections of Negotiable Instruments Act Section 26

Legal Commentary & Landmark Judgments: Section 25

Section 25 governs maturity when the due date falls on a public holiday, enacting that the instrument shall be deemed to be due on the next preceding business day.

  • Advancement of Maturity: Unlike ordinary civil court holidays where filing moves to the next day, negotiable paper maturity moves BACKWARD to the next preceding business day.
  • Public Holiday Definition: Includes Sundays and any other day declared by the Central Government by notification in the Official Gazette to be a public holiday.
  • Impact on Grace Days: If the third day of grace falls on a public holiday, the instrument must be presented on the second day of grace.
Key Landmark Precedents:
  • State of Maharashtra v. Lalit Somdatta: Examined the effect of gazetted holidays under the Negotiable Instruments Act on banking clearances and presentment obligations.
  • Ramamurthy v. Sitaramayya: Held that where maturity advances to the preceding business day under Section 25, presentment on the subsequent day is belated unless protected by Section 75A.
Courtroom Practice & Strategic Litigation Guidance:

Corporate treasuries must track bank holiday schedules closely when managing term bills. If maturity falls on Sunday, presentment and payment must be executed on Saturday. Note that emergency unnotified holidays advance maturity to the NEXT succeeding day under the Explanation.

Section 24 All 148 Sections of Negotiable Instruments Act Section 26