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Section 67: Presentment for payment of promissory note payable by installments

Negotiable Instruments Act • Official Statutory Text & Practice Guide

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Act 1881
Section 66 All 148 Sections of Negotiable Instruments Act Section 68

Legal Commentary & Landmark Judgments: Section 67

Section 67 regulates promissory notes payable by instalments, enacting that the note must be presented for payment on the third day after the date fixed for each instalment.

  • Instalment-Wise Grace Days: The maker is entitled to three days of grace on each individual instalment date.
  • Non-Payment Consequence: Non-payment of an instalment has the same effect as non-payment of a note at maturity, discharging indorsers as to that instalment.
  • Acceleration Clauses: Where the note provides that default of one instalment makes the entire balance immediately due, failure to pay triggers presentment for the whole sum.
Key Landmark Precedents:
  • Carlon v. Kenealy (1843) 12 M & W 139: The leading precedent holding that instalment notes with acceleration clauses maintain their full negotiability under commercial law.
  • Ramnarayan v. Murlidhar: Affirmed that where an instalment is not presented on the third grace day, indorsers are discharged regarding that specific instalment under Section 67.
Courtroom Practice & Strategic Litigation Guidance:

In loan documentation where repayment is structured via monthly promissory notes or an instalment note with an acceleration clause, monitor default notices meticulously. Issue notice immediately upon default of the first instalment to accelerate the debt under the contract.

Section 66 All 148 Sections of Negotiable Instruments Act Section 68