No notice of dishonour is necessary:
when it is dispensed with by the party entitled thereto;
in order to charge the drawer when he has countermanded payment;
when the party charged could not suffer damage for want of notice;
when the party entitled to notice cannot after due search be found; or the party bound to give notice is, for any other reason, unable without any fault of his own to give it;
to charge the drawers, when the acceptor is also a drawer;
in the case of a promissory note which is not negotiable;
when the party entitled to notice, knowing the facts,promises unconditionally to pay the amount due on the instrument.
Legal Commentary & Landmark Judgments: Section 98
Section 98 enumerates the statutory circumstances where notice of dishonour is completely unnecessary and dispensed with, protecting holders from technical dismissals.
In civil suits on dishonoured cheques where a separate Section 93 notice was not issued (only the Section 138 notice was sent), plead Section 98(c): notice of dishonour was unnecessary as against the drawer because the drawer had no funds and suffered no damage.