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Section 72: Presentment of cheque to charge drawer

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Act 1881
Section 71 All 148 Sections of Negotiable Instruments Act Section 73

Legal Commentary & Landmark Judgments: Section 72

Section 72 establishes that a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and their banker has been altered to the prejudice of the drawer.

  • Presentment to Drawee Bank: The cheque must be delivered to the bank branch where the drawer maintains the account.
  • Prejudice / Bank Failure Criterion: The drawer is discharged only if the delay in presentment caused actual prejudice—specifically, if the bank failed during the delay, causing loss of funds (under Section 84).
  • Distinction from Indorser Discharge: Unlike indorsers who are discharged by mere delay, the drawer remains liable unless bank insolvency intervened.
Key Landmark Precedents:
  • Canara Bank v. Canara Sales Corporation (1987) 2 SCC 666: The Supreme Court analyzed the contractual and statutory relationship between drawer, payee, and drawee bank under Section 72.
  • Wheeler v. Young (1897): The leading authority holding that a drawer cannot claim discharge under Section 72 merely because the cheque was held for weeks, unless the bank suspended payments during that time.
Courtroom Practice & Strategic Litigation Guidance:

In civil suits for cheque recovery, drawers often plead 'the plaintiff held the cheque for two months before presenting it'. Under Section 72, this defence is legally invalid unless the drawer can prove the bank crashed during those two months.

Section 71 All 148 Sections of Negotiable Instruments Act Section 73