Section 93 NI Act: By and to whom notice should be given

Section 93 of Negotiable Instruments Act: By and to whom notice should be given

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

When a promissory note, bill of exchange or cheque is dishonoured by non-acceptance or non-payment, the holder thereof, or some party thereto who remains liable thereon, must give notice that the instrument has been so dishonoured to all other parties whom the holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly liable thereon.

Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory note or the drawee or acceptor of the dishonoured bill of exchange or cheque.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Promissory Note Sec 4 Bill Of Exchange Sec 5 Cheque Sec 6 Holder Sec 8

Legal Commentary & Landmark Judgments: Section 93

Section 93 governs the mandatory notice of dishonour, enacting that when an instrument is dishonoured by non-acceptance or non-payment, the holder must give notice thereof to all parties whom they seek to make liable thereon.

Mandatory Condition Precedent: Notice of dishonour is strictly compulsory to charge the drawer and prior indorsers in civil recovery actions.
Discharge for Failure of Notice: Any party entitled to notice to whom notice is not given within a reasonable time is completely discharged from liability on the instrument.
Exception of Primary Debtors: Notice of dishonour is NOT required to be given to the maker of a promissory note or acceptor of a bill, as their liability is primary.

Key Landmark Precedents:

Sitaram v. Sadasheo: Held that failure to serve notice of dishonour under Section 93 completely releases the drawer and indorsers from all civil liability on the bill and underlying debt.
Caunt v. Thompson (1849): Affirmed that the purpose of Section 93 is to alert prior parties so they may take immediate protective steps against the primary debtor.

Courtroom Practice & Strategic Litigation Guidance:

Do not confuse Section 93 with Section 138(b). Section 93 is the general civil requirement for all negotiable instruments; Section 138(b) is the specific 30-day statutory demand notice for cheque bounce prosecutions. In civil suits on bills and notes, plead Section 93 compliance explicitly.

Section 93: By and to whom notice should be given

Section 93 of Negotiable Instruments Act: By and to whom notice should be given

Legal Commentary & Landmark Judgments: Section 93