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Section 73: Presentment of cheque to charge any other person

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 72 All 148 Sections of Negotiable Instruments Act Section 74

Legal Commentary & Landmark Judgments: Section 73

Section 73 regulates presentment of a cheque to charge any person other than the drawer (such as an indorser), enacting that the cheque must be presented within a reasonable time after its delivery.

  • Strict Reasonable Time for Indorsers: Unlike the drawer, an indorser is discharged by mere unreasonable delay in presenting the cheque, even if the bank remains solvent.
  • Standard Banking Custom: Under commercial practice, a reasonable time is generally the next business day after receiving the cheque.
  • Protection for Intermediate Indorsers: Prevents holders from hoarding third-party indorsed cheques and exposing indorsers to prolonged contingent liability.
Key Landmark Precedents:
  • Moulin v. Dallison: Established that an indorser of a cheque is entitled to strict, prompt presentment; holding the cheque beyond customary clearing schedules discharges the indorser completely.
  • Pramatha Nath v. Bank of Commerce: Affirmed that an indorser is discharged under Section 73 if the holder delays presenting the cheque through ordinary clearing channels.
Courtroom Practice & Strategic Litigation Guidance:

If your client indorsed a third-party cheque to a supplier and the supplier sat on it for a month before presenting it, your client is completely discharged under Section 73, even though the original drawer remains liable.

Section 72 All 148 Sections of Negotiable Instruments Act Section 74