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Section 63: Drawee's time for deliberation

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1881
Section 62 All 148 Sections of Negotiable Instruments Act Section 64

Legal Commentary & Landmark Judgments: Section 63

Section 63 grants the drawee a statutory period of deliberation, enacting that the holder must allow the drawee forty-eight hours (exclusive of public holidays) to consider whether they will accept the bill of exchange.

  • 48 Hours Deliberation Right: The drawee is entitled to 48 hours to examine accounts, verify signatures, and deliberate upon acceptance.
  • Exclusion of Public Holidays: Sundays and official gazetted holidays are excluded from the 48-hour calculation.
  • Custody of Instrument: The drawee may retain the bill during these 48 hours; if not accepted upon expiry, it must be returned immediately or treated as dishonoured.
Key Landmark Precedents:
  • Bank of Baroda v. Punjab National Bank (AIR 1944 PC 58): The Privy Council examined the drawee's statutory period of deliberation under Section 63 in relation to bank certifications and acceptances.
  • Meyer v. Decroix [1891] AC 520: Discussed the drawee's rights during the deliberation window and the consequences of qualified acceptances.
Courtroom Practice & Strategic Litigation Guidance:

The holder must not treat a bill as dishonoured prematurely before the 48-hour deliberation window has expired under Section 63. However, if the holder allows MORE than 48 hours without prior parties' consent, those prior parties are discharged under Section 83.

Section 62 All 148 Sections of Negotiable Instruments Act Section 64