When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or upon a paper attached thereto, or partly upon each.
Such note must be made within a reasonable time after dishonour, and must specify the date of dishonour, the reason, if any, assigned for such dishonour, or, if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, and the notary’s charges.
Legal Commentary & Landmark Judgments: Section 99
Section 99 defines 'noting', providing a formal statutory procedure whereby a Notary Public records the fact of dishonour upon a promissory note or bill of exchange within a reasonable time after dishonour.
While noting is optional for inland instruments, it is highly recommended for high-value trade bills and corporate promissory notes. A notarial note under Section 99 creates an immediate evidentiary presumption of dishonour in summary suits under Order XXXVII CPC.