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Section 74: Presentment of instrument payable at demand

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 73 All 148 Sections of Negotiable Instruments Act Section 75

Legal Commentary & Landmark Judgments: Section 74

Section 74 regulates presentment of an instrument payable on demand, enacting that it must be presented for payment within a reasonable time after it is received by the holder.

  • Demand Paper Circulation: Governs demand promissory notes and demand drafts circulating in commercial markets.
  • Reasonable Time Context: Reasonable time is determined under Section 105 with regard to the nature of the paper, distance, and banking customs.
  • Discharge of Indorsers: Unreasonable delay in presenting demand paper discharges all indorsers, leaving only the primary maker bound.
Key Landmark Precedents:
  • Chartered Bank v. Dickson (1871) LR 3 PC 574: The Privy Council held that what constitutes a reasonable time for presenting a demand note must be determined by the commercial facts of each transaction.
  • Ram Sarup v. Hardeo Prasad: Affirmed that a demand note held for years without presentment remains enforceable against the maker within the 3-year limitation period, but indorsers are discharged.
Courtroom Practice & Strategic Litigation Guidance:

Distinguish between the maker's liability (which lasts 3 years from the date of the note under Article 35 Limitation Act) and the indorsers' liability (which is extinguished under Section 74 if not presented within a reasonable time).

Section 73 All 148 Sections of Negotiable Instruments Act Section 75