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negotiable-instruments:presentment_of_promissory-note-for-sight

Presentment of promissory note for sight

Section 62 of the Negotiable Instruments Act,1881.

A promissory note, payable at a certain period after sight must be presented to the maker thereof for sight (if he can after reasonable search be found) by a person entitled to demand payment, within a reasonable time after it is made and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.

The underlying principle governing the section is the same as what governs the previous section. A promissory note payable “after sight” means a note payable after presentment for sight, that is to say, after exhibition thereof to the maker for the purpose of founding a claim for payment. In case of a note payable after sight, presentment is necessary before demand can be made. It is a condition precedent to the demand. Until such presentment no debt becomes due and no cause of action arises until presentment for sight has been made and the time limit has elapsed. Therefore, when a holder fails or omits to make the presentation he loses all rights under it and cannot recover on the instrument but the rights of the other parties to the note remain unaffected by such default of the holder. It is only the notes payable “after sight” but not notes payable “at sight” or “on demand” or “on a fixed date” or “on the expiration of a fixed period from date” that require presentment. As for reasonable time and place and time for presentment see notes under section 61.

Created on 2021/02/18 07:39 by LawPage • Last modified on 2021/02/18 07:39 by LawPage