Introduction

The law relating to Negotiable Instruments is contained in the Negotiable

Instruments Act, 1881. The Act came into force on 1st March,1882. The Act
extends t the whole of India, except the State of Jammu & Kashmir.

Definition
According to Section 13 of the Negotiable Instrument Act, “a negotiable
instrument means a promissory note, bill of exchange or cheque payable either
to order or to bearer". “A Negotiable instrument may be made payable to two
or more payees jointly, or it may be made payable in the alternative to one of
two, or one or some of several payees" [Sec. 13(2)].

Instruments are payable in following forms:

1. Payable to Order: An instrument is payable to order if it is expressed to
be payable to a particular person or his order. But such an instrument
must not contain such words as may prohibit transfer or indicate an
intention that it shall not be transferable.
2. Payable to Bearer: An instrument is payable to bearer if it is expressed
to be payable to any person whosoever bears it. If an instrument is
originally made ‘Payable to Order’, it may be made ‘Payable to Bearer’
by an endorsement in blank upon the instrument.
The Reserve Bank of INDIA Act
Section 31 of the Reserve Bank of INDIA Act, 1934 states that:
 No person in India other than the Reserve Bank or the Central
Government shall draw, make or issue any bill of exchange, hundi,
promissory note “payable to bearer”.
 No person in India other than the Reserve Bank or the Central
Government shall draw or accept a bill of exchange “payable to bearer
on demand’.
 A cheque “payable to bearer on demand” can be drawn on a person’s
account with a bank.
Section 32 of the Reserve Bank of India Act, makes the issue of such bills or
notes a criminal offence and declares them illegal and unenforceable at law.
 Characteristics of Negotiable Instruments
1. Easy transferability: It means that the property in a negotiable
instrument is freely transferable without any formality by
delivery if the instrument is payable to bearer, or by delivery
and endorsement if it is payable to order.
2. Property: The holder of the negotiable instrument is presumed
to be the owner of the property contained therein.
3. Title: A holder in due course of a negotiable instrument get the
instrument free from all defects of title of any previous holder.
4. Rights: The holder in due course of a negotiable instrument is
entitled to sue on an instrument in his own name.
5. Transfer: A negotiable instrument can be transferred any
number of times till its maturity.
6. Presumptions: Until the contrary is proved, the following
Presumptions (Sections 118 and 119) shall be made:
(a) of consideration:—that every negotiable instrument
was made or drawn for consideration, and
that every such instrument, when it has been accepted,
indorsed, negotiated or transferred, was accepted,
indorsed, negotiated or transferred for consideration;
(b) as to date:—that every negotiable instrument bearing
a date was made or drawn on such date;
(c) as to time of acceptance:—that every accepted bill of
exchange was accepted within a reasonable
time after its date and before its maturity;
(d) as to time of transfer:—that every transfer of a
negotiable instrument was made before its
maturity;
(e) as to order of indorsements:—that the indorsements
appearing upon a negotiable instrument
were made in the order in which they appear then on;
(f) as to stamp:— that a lost promissory note, bill of
exchange or cheque was duly stamped;
(g) that holder is a holder in due course:— that the holder
of a negotiable instrument is a holder in
due course :
provided that, where the instrument has been obtained
from its lawful owner, or from any person in
lawful custody thereof, by means of an offence or fraud,
or has been obtained from the maker or acceptor
thereof by means of an offence or fraud, or for unlawful
consideration, the burden of proving that the
holder is a holder in due course lies upon him.
(h) protest.—In a suit upon an instrument which has been
dishonoured,
the Court shall, on proof of the protest, presume the fact
of dishonour, unless and until such fact is
disproved.
 Promissory Note
According to Section 4.” A Promissory note is an instrument in writing (not
being a bank-note or a currency-note) containing an unconditional
undertaking, signed by the maker, to pay a certain sum of money only to, or to
the order of, a certain person, or to the bearer of the instrument.”
The person who promises to pay is called ‘The Maker’. The person to whom
the payment is made is called ‘The Payee'.

Essentials of a Promissory Note

1. It must be in written.
2. It must contain a promise or undertaking to pay.
3. The undertaking to pay is unconditional.
4. It must be signed by the maker.
5. The maker must be a certain person.
6. The payee must be certain.
7. The sum payable must be certain.
8. Promise to pay money only.
9. Stamping and other formalities.
 Bills of Exchange
According to Section 5,” A bill of exchange is an instrument in writing
containing an unconditional order, signed by the maker, directing a certain
person to pay a certain sum of money only to, or to the order of,
a certain person or to the bearer of the instrument.

A promise or order to pay is not conditional , within the meaning of this section
and section 4, by reason of the time for payment of the amount or any
instalment thereof being expressed to be on the lapse of a certain
period after the occurrence of a specified even which, according to the
ordinary expectation of mankind, is certain to happen, although the time of its
happening may be uncertain.

The sum payable may be certain , within the meaning of this section and
section 4, although it includes future interest or is payable at an indicated rate
of exchange, or is according to the course of exchange, and although the
instrument provides that, on default of payment of an instalment, the balance
unpaid shall become due.

The person to whom it is clear that the direction is given or that payment is to
be made may be a certain
person , within the meaning of this section and section 4, although he is mis-
named or designated by description only.

Parties to a Bill of Exchange

Drawee: The maker of a bill of exchange or cheque is called the drawer ; the
person thereby directed to pay is called the drawee.
Payee: The person named in the instrument, to whom or to whose order the
money is by the instrument directed to be paid, is called the Payee.
Drawer: The person who writes the bill and sends it to the drawee for his
acceptance is called the drawer.
Drawee in case of need: When in the Bill or in any indorsement thereon the
name of any person is given in addition to the drawee to be resorted to in case
of need, such person is called a drawee in case of need.
Acceptor: After the drawee of a bill has signed his assent upon the bill, or, if
there are more parts thereof than one, upon one of such parts, and delivered
the same, or given notice of such signing to the holder
or to some person on his behalf, he is called the acceptor.
Acceptor for honour: [When a bill of exchange has been noted or protested for
non-acceptance or for better security,] and any person accepts it supra protest
for honour of the drawer or of any one of the endorsers, such person is called
an acceptor for honour.

Essentials of a Bill of Exchange

1. It must be un writing.
2. It must contain an order to pay money and money alone.
3. The order to pay must be unconditional.
4. It must be signed by the drawer.
5. The drawer, drawee and payee must be certain.
6. The sum payable must be certain.
7. It must comply with the formalities as regards date,
consideration, stamps, etc.
8. The bill must contain an order to pay money only.

Benefits of Bill of Exchange

1. Bills of exchange is a double secured instrument.
2. It can be discounted with a bank by the Payee in the case of
emergency.
3. Two separate trade debts can be discharged by a bill.
 Types of bills
Accommodation Bill
An accommodation bill is apparently quite similar to an ordinary trade bill
of exchange, except that it is not supported by any consideration or a
trading transaction. It is drawn to provide financial help either to the
drawer or to both the drawer and the drawee. In other words we can say
that it is sort of Mercantile credit where one person lends out his name of
the bill so that the other person taking the bill can get the same discounted
from the bank and get money for the same. Since such bills are drawn and
accepted without any consideration with view to accomodate, they are
termed as 'accomodation bills'.

Documentary Bill
When documents relating to the title to the goods etc., e.g., invoice, bill of
lading or railway receipt, marine insurance policy etc., are attached to a bill,
the bill is called a Documentary Bill. Such documents are delivered to the
buyer only on acceptance or payment of the bill; thus, furnishing the holder
with security, in case acceptance or payment is refused by the drawee. Such
bills are often used in foreign trade and are called Documentary bills.

Fictitious Bill
When in a bill of exchange the names of both the drawer and the payee are
fictitious, the bill is said to be a fictitious bill. Such a bill is drawn in a
fictitious name and is made payable to the drawer's order and as such the
names of both the drawer and the payee are said to be of a fictitious
person.
 Cheques
According to Section 6 of The Negotiable Instruments Act, ”A cheque is a
bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand and it includes the electronic image of a
truncated cheque and a cheque in the electronic form.”

Explanation I. For the purposes of this section, the expressions 2

(a) a cheque in the electronic form means a cheque drawn in electronic
form by using any computer resource and signed in a secure system with
digital signature (with or without biometrics signature) and asymmetric
crypto system or with electronic signature, as the case may be;
(b) a truncated cheque means a cheque which is truncated during the
course of a clearing cycle, either by the clearing house or by the bank
whether paying or receiving payment, immediately on generation of an
electronic image for transmission, substituting the further physical
movement of the cheque in writing.

Explanation II. For the purposes of this section, the expression clearing
house means the clearing house managed by the Reserve Bank of India or a
clearing house recognised as such by the Reserve Bank of India.

Explanation III. For the purposes of this section, the expressions asymmetric
crypto system, computer resource , digital signature , electronic form and
electronic signature shall have the same
meanings respectively assigned to them in the Information Technology Act,
2000 (21 of 2000).
 Types of Negotiable Instruments
Time Instrument
An instrument payable after a fixed time (say, after six months) or on
specified date (say on 15 November 2009) is known as a 'time instrument'.
Demand Instrument
An instrument payable on demand or at right (i.e., on presentation in case
of a cheque or a promissory note and on acceptance in case of a bills of
exchange) is termed as a 'demand instrument'. A promissory note or bill of
exchange in which no time for payment is specified is also a demand
instrument.
Ambiguous Instrument
Where the instrument is so worded that it can be treated as a bill or a note,
it is called an ambiguous instrument. Section 17 lays down that where an
instrument may be construed either as promissory note or bill of exchange,
the holder may at his option treat it as bill or note and the instrument
thereafter shall be treated accordingly.
The following are the examples of ambiguous instruments
(a) Where the drawer and the drawee are the same person. Hence, where a
bill is drawn by an agent, acting within the scope of his authority, the holder
may, at his option, treat it as a note or a bill because the drawer and the
drawee are the same person in the eye of law.
(b) Where in a bill the drawee is a fictitious person or a person not having
the capacity to contract.
Inchoate Instrument
Inchoate Instrument means an incomplete instrument. According to Section
20, "When one person signs and delivers to another a paper stamped in
accordance with the law relating to negotiable instruments, then in force in
India and either wholly blank or having written thereon an incomplete
negotiable instrument, he thereby gives prima facie authority to the holder
thereof to make or complete, as the case may be, upon it a negotiable
instrument, for any amount specified therein and not exceeding the
amount covered by the stamp.
 Maturity of Negotiable Instrument
"Maturity means the date on which the payment of an instrument falls due.
As such no question of maturity is arises in the case of an instrument
payable on demand since it becomes payable immediately on the date of its
execution. According to Section 22, every promissory note expressed to be
payable on a specified day or at a certain period after date or at a certain
period after the happening of an event which is certain to happen is at
maturity on the third day
after the day on which it is expressed to be payable. For example, a bill of
exchange drawn on 1st February, if expressed payable four months after
date, is at maturity on 4th June. Such a bill or note must be presented for
payment only on the last day of grace, and if dishonoured. The suit can be
filed on the next day after maturity.

Payment in Due Course

A bill is discharged only when the payment is made in due course.
Therefore, where the payment is not made in due course, the instrument is
not discharged and the holder can still claim the amount.
Section 10 provides that payment in due course means payment in
accordance with the apparent tenor of the instrument in good faith and
without negligence to any person in possession thereof under
circumstances which do not afford reasonable ground for believing that he
is not entitled to receive payment of the amount mentioned therein.

Payment in due course, which results in discharge of a negotiable

instrument, must satisfy the following conditions:
1. The payment must be in accordance with the apparent tenor of the
instrument. Apparent tenor' means payment according to what appears
on the face of the instrument to be the intention of the parties.
2. The payment must be made in money only.
3. The person to whom payment is made should be in possession of
the instrument and should also be entitled to receive payment on it.
4. The payment should be made in good faith, without negligence and
under bonafide circumstances.
 Parties to Negotiable Instruments

Holder (Section 8)
The 'holder' of a negotiable instrument means any person entitled in his
own name to the possession thereof and to receive or recover the amount due
thereon from the parties liable thereto. Where the note, bill or cheque is lost
or destroyed, its holder is the person so entitled at the time of such loss or
destruction.
Thus, two conditions are essential to be fulfilled for a person to
become a holder:
1. The person must be entitled to the possession of the instrument in his
own name.
2. The person must be entitled to receive or recover the amount due
thereon from the parties liable thereto.

Holder in Due Course

The 'holder in due course' means any person who for consideration became
the possessor of a negotiable instrument if payable to bearer, or the payee or
endorsee thereof if payable to order, before the amount mentioned in it
became payable, and without sufficient cause to believe that any defect
existed in the title of the person from whom he derived his title. (Section 9).
Before a person can claim to be a holder in due course, he must satisfy the
following requisites:
1. He must be a 'Holder'.
2. He must be a ‘Holder' for valuable consideration.
3. He must acquire the instrument before maturity.
4. He must acquire the instrument complete and regular.
5. He must have become holder in good faith.

Privileges of Holder in Due Course

1. Instrument purged of all defects.
2. Rights not affected in case of an inchoate instrument.
3. Liability of Prior Parties.
4. Privilege in case of fictitious bill.
5. Privilege when an instrument delivered conditionally is negotiated.
6. Estoppel against denying original validity of instrument.
7. Estoppel against denying capacity of payee to endorse.
 Capacity of Parties
According to Section 11 of the Indian Contract Act, 1872, every person is
competent to contract who is of the age of majority according to the law to
which he is subject, and is of sound mind and not disqualified from contracting,
by any law to which he is subject. A person competent to contract can become
party to a negotiable instrument. His capacity to incur liability as a party to
bill of exchange, promissory note or cheque is coextensive with his capacity to
contract. (Section 26, Para I). If a party who makes, draws, accepts, endorses,
delivers or negotiates a promissory note, bill of exchange or cheque, is
incompetent to do so, the agreement is void as against him.

Lets discuss the different cases of incapacity to incur liability as a party to

negotiable instrument
1. Minors. According to Section 26, "a minor may draw, endorse, deliver
and negotiate a negotiable instrument so as to hold all parties except himself.
liable. He may set up his incapacity even against a holder in due course and
even the doctrine of estoppel is not applicable to him. A promissory note made
by a minor even for necessaries of life is worthless and cannot form
consideration of a fresh promissory note made by him on attaining majority.
2. Persons of unsound Mind. These include lunatics, idiots, drunkards.
Contracts of such persons stand on the same footing as to minors. Thus,
negotiable instrument drawn by a person of unsound mind at the time, when
such a person was incapable of understanding it, cannot be enforced against
such a person. But the other parties to the instrument remain liable.
3. Insolvent. An insolvent is not competent to draw, make, accept, or endorse
negotiable instrument so as to bind his estate which now stands vested in the
Official Receiver. But if he endorses an instrument of which he is the payee or
endorsee to a holder in due course, the endorsement is valid as against all
prior parties liable except the insolvent himself.
4. Joint Stock Company. A non-trading joint stock company has no implied
power to draw or accept negotiable instrument. This power is to be expressly
obtained by the objects clause of the Memorandum of Association.
5. Legal Representative. Legal representative is a person who represents
the estate of a deceased person or to whom the estate of the deceased person
would pass. Such a person is entitled to recover the amount of the instrument
due to the deceased and can give a valid discharge.
6. Agent. Section 27 provides that a person capable of contracting may
make, draw, accept, endorse, deliver and negotiate a bill, note or cheque
either himself or through a duly authorised agent acting in his name.
 Negotiation of Negotiable Instruments

Negotiation
Section 14 of the Act states as "When a promissory note, a bill of exchange
or a cheque is transferred to any person, so as to constitute that person as the
holder thereof, the instrument is said to be negotiated." When a negotiable
instrument is transferred by a negotiation, the title or ownership of the
instrument is conveyed from the holder to the transferee thereof. Upon
negotiation, the transferee becomes the holder of the instrument and
becomes entitled in his own name to sue on the instrument and recover the
amount due thereon.
Who may Negotiate? (Section 51). Every maker, drawer or payee or
endorser and in case, there are several makers, drawers, payees or endorsers,
all of them jointly can negotiate an instrument, provided negotiability of such
instrument has been restricted or excluded by any express words used in the
instrument. But the maker, drawer, payee or endorsee cannot negotiate the
instrument unless he is in lawful possession or is a holder of such instrument.
Duration of Negotiability (Section 60). A negotiable instrument may be
negotiated until payment or satisfaction thereof by the maker, drawee or
acceptor on or after maturity, but not after such payment or satisfaction. Thus,
negotiability of an instrument stops only when the party ultimately liable
thereon pays it on or after maturity. It can be negotiated even on or after
maturity if it has been paid or satisfied. A payment before maturity does not
stop negotiability. The acceptor or maker who receives the instrument after
payment but before maturity may reissue it.

Modes of Negotiation
Negotiation may be made by any of the two methods:-
1. Negotiation by Delivery: If an instrument is payable to the bearer, it
is negotiable by delivery thereof (Section47). The person to whom
the instrument is delivered becomes the holder. The effect of such
transfer is that as the transferor does not put his signatures on the
instrument, he is not liable either to an immediate party or to a
subsequent holder in case of an instrument being dishonoured. The
transferee can not recover any amount from the transferor thereof.
 Delivery of a negotiable instrument may be
1. Actual Delivery. Where the change of the actual possession of the
instrument takes place. The negotiable instrument is physically
handed over to the person.
2.Constructive delivery. Where the instrument is delivered to the
servant, agent or any other person, who holds the instrument on
behalf of the person, to whom it was to be actually delivered.
3. Conditional delivery. Where an instrument is delivered with some
condition attached to it, the property in it does not pass to the
transferee till the condition is fulfilled. Similarly, where an instrument
is delivered conditionally for a special purpose only, the property in it
does not pass to the transferee even though it is endorsed to him.

The plea of conditional delivery is available only against parties who

take the instrument with the notice of the condition, but not against
the holder in due course. The holder in due course can hold all prior
parties liable on the instrument even in the case of a conditional
delivery.
2. Negotiation by Endorsement: (Section 48). A negotiable instrument
payable to order is negotiable by the holder by endorsement and
delivery thereof. Thus, the negotiation of an order instrument
requires two formalities, namely, first the holder should endorse it
and then deliver to his endorsee.
Indorsement means writing of person's name on the back of the
negotiable instrument for the purpose of its negotiation. Section 15
defines indorsement as follows:
"When the maker or holder of a negotiable instrument signs the
same, otherwise than as such maker, for the purpose of negotiation,
on the back or face thereof or on a slip of paper annexed thereto, or
so signs for the same purpose a stamped paper intended to be
completed as negotiable instrument, he is said to indorse the same,
and is called the indorser. The person making the indorsement is
called 'Endorser' and the person in whose favour the instrument is
endorsed is called the 'Endorsee'.
Essentials of a Valid Indorsement
1. It must be on the face or back of the instrument.
2. It must be signed by the payee in exact spellings as appearing on the face of
the negotiable instrument.
3. No prefix or suffix to the name of the endorsee should be included in the
indorsement.
4. Indorsement must be in ink. Indorsement in pencil or by a rubber stamp is
usually not accepted.
5. Indorsement must be completed by delivery of the instrument. Until
delivery of the instrument, the indorsement may be revoked at any time by the
endorser. The delivery of the instrument is required to be made with the
intention of passing the property in it to the endorsee.
6. Indorsement does not require any particular form of words. However, it
must contain an order to pay.
7. If the payee is an illiterate person, he may endorse the instrument by
putting his thumb impression thereon, in the presence of certain other persons
who should sign it as witnesses.
8. In case of a married woman, her husband's name should also be mentioned
in the indorsement.
9. Indorsement shall be presumed to have been made in the order in which
they appear on the instrument unless proved to the contrary.

Types of Indorsement
Indorsements may be of following kinds:
1. Blank or General Indorsement
If the endorser signs his name only and does not specify the name of the
endorsee, the indorsement is said to be in blank. [Sec. 16(1)) The effect
of blank indorsement is to convert the order instrument into bearer
instrument (Section 54), which may be transferred merely by delivery.
2. Full and Special Indorsement
According to Section 16(i), if the endorser signs his name and adds a
direction to pay the amount mentioned in the instrument to, or
to the order of, a specified person, the instrument is said to be endorsed
in full.
3. Restrictive Indorsement (Section 50)
An indorsement is said to be restrictive when it prohibits or restricts the
further negotiability of the instrument. Such a restriction may be
introduced by express words in the indorsement. Such an indorsement
entitles the holder of the instrument to receive the amount for a specific
purpose.
4. Partial Indorsement
Section 56 provides that a negotiable instrument cannot be endorsed for
a part of the amount appearing to be due on the instrument. In other
words, a partial indorsement which transfers the right to receive only
has been declared invalid because it would subject the prior parties to
plurality part payment of the amount due on the instrument is invalid.
Such an indorsement of actions and will thus cause inconvenience to
them.
5. Conditional Indorsement
An indorsement is conditional or qualified which limits or negatives the
liability of the endorser. Section 52 provides that "where the endorser of
a negotiable instrument by express words in the indorsement makes his
liability, dependent upon the happening of a specified event, although
such event may never happen, such indorsement is called conditional
indorsement." A conditional indorsement differs from a restrictive
indorsement. A restrictive indorsement places restriction on the
negotiability of the instrument whereas the conditional indorsement
limits or negatives the liability of the endorser. The law permits a
conditional indorsement and, therefore, it does not in any way affect the
negotiability of the instrument.
6. Sans Recourse Indorsement (Section 52)
This is the most popular manner in which the indorsement is made
conditional or qualified. 'Sans Recourse' means without recourse or
without liability. An endorser, who does not want to take any risk on the
instrument, may endorse it ‘sans recourse' by adding the words “Sans
recourse" or "without recourse".
7. Facultative Indorsement
When the endorser expressly gives up some of his rights under the
negotiable instrument, the indorsement is called "facultative"
indorsement.
 Dishonour of Negotiable Instruments
A bill of exchange may be dishonoured by (a) non-acceptance, or (&) non-
payment. A promissory note or cheque may be dishonoured only by non-
payment. When a negotiable instrument is dishonoured, the holder must give
a notice of dishonour to all the previous parties so as to make them liable on
the instrument.
Dishonour by Non-Acceptance (Section 91)
A bill of exchange is said to be dishonoured by non-acceptance in the
following cases
1. When the drawee or one of several drawees (not being partners) makes
default in acceptance upon being duly required to accept the bill. It may be
recalled that the drawee may require 48 hours lime (exclusive of public
holiday) to consider whether he will accept or not. (Section 63).
2. Where the presentment for acceptance is excused and the bill remains
unaccepted.
3. Where the drawee is incompetent to contract
4. Where the drawee makes a qualified acceptance (Section 86).
5. Where the drawee is a fictitious person or after reasonable search cannot
be found. (Section 61).
Dishonour by Non-payment (Section 92)
A negotiable instrument is dishonoured by non-payment.
1. The maker of the promissory note, acceptor of the bill of exchange, or the
drawee of the cheque makes default in the payment upon being duly required
to pay the same.
2. When the bill remains unpaid at or after maturity in those cases where it
is not required to be presented for payment. (Section 76).
Effect of Dishonour
As soon as a negotiable instrument is dishonoured (either by non-acceptance
or by non-payment) the holder becomes entitled to sue the parties liable to
pay thereon. The drawer of cheque, maker of note, acceptor and drawer of bill
and all the endorsers are liable severally and jointly to holder in due course.
The holder must, however, give 'Notice of Dishonour' to all parties against
whom he intends to proceed. He may (at his option) also have the instrument
'noted and protested' before a notary public.
Notice of Dishonour
Notice of Dishonour is always given on the dishonour of instrument.
Notice by whom? Notice of dishonour may be given by the holder or by
any of the parties liable on the instrument to the prior parties. (Section 93).
The agent of any such party may also give notice.
 Notice to whom? No notice is necessary to the maker of a note or acceptor
of a bill of exchange or drawee of a cheque as they are the principal debtors
and they themselves have dishonoured the note or the bill. Notice must be
given to all other parties whom the holder wants to make liable.
Mode of giving notice – Notice of Dishonour may be in any form. It may be
oral or written. The notice may be in any mode but it must clearly indicate
that:
(i) the instrument has been dishonoured;
(ii) the way in which it has been dishonoured; and
(iii) the person to whom it is given will be held liable.
The notice must be given within a reasonable time after dishonour at the
place of business, or if there is no such place, at the residence of the person for
whom it is intended. (Section 94).
What is reasonable time? In determining what is a reasonable time for
giving notice of dishonour, regard shall be had to the nature of the instrument,
the usual course of dealings with respect to similar instruments and the
distance between the parties and in calculating such time, public holidays shall
be excluded. (Section 105).
Noting
'Noting means the recording of the fact of dishonour by a Notary Public upon
the instrument within a reasonable time after dishonour (Section92). The
noting must contain the following particulars:
1. The date of dishonour;
2. The reason, if any, assigned for such dishonour;
3. The Notary's charges,
Nothing is not compulsory in the case of an inland bill or note.
Protest
'Protest' is a formal certificate of dishonour issued by the notary public to the
holder of the bill or note, on his demand (Section 100).
Contents of Protest (Section 101)
A protest must contain all the following particulars:
1. The instrument or a literal transcript of the instrument.
2. The name of the person for whom and against whom the instrument is
protested.
3. The fact of and reason for dishonour.
4. The place and time for dishonour.
5. The signature of the Notary Public.
6. In case of acceptance for honour or payment for honour, the name of the
person accepting or paying and the name of the person for whose honour it is
accepted or paid.