Presentment for payment of instrument payable at specified place and not elsewhere
Section 68 of the Negotiable Instruments Act,1881.
A promissory note, bill of exchange or cheque made, drawn or accepted payable at a specified place and not elsewhere must, in order to charge any party thereto, be presented for payment at that place.
Instrument payable at specified place
Section 69 of the Negotiable Instruments Act,1881.
A promissory note or bill of exchange made, drawn or accepted payable at a specified place must, in order to charge the maker or drawer thereof, be presented for payment at the place.
The two sections may be discussed together as the principle enunciated therein is the same. The ordinary rule under which the debtor must seek his creditor for payment does not apply in the case of a negotiable instrument. Instruments payable at a specified place and not elsewhere, must be presented for payment at that particular place in order to bind the maker or the acceptor or drawee, as the case may be, as well as the other parties thereto. If such presentment is not made, all parties to the instrument will, subject to the provision of section 76 (d) post, be discharged from liability. No presentment is valid unless it is made after maturity. The word “specified place” in section 69 means a place so particularised that the promisee can know where he must present the instrument for payment.
Where, therefore, a note provides that it is payable at Bombay or Poona or elsewhere, the note is not payable only at Bombay or Poona, being payable elsewhere, that is, at a place not specified, it is not incumbent on the promisee to present it at any place. A town is a specified place. Thus, a promissory note payable on demand at Calcutta requires presentation to render the maker liable. The word, place, includes places. If more than one place are mentioned there must be presentment at one or other of those places and it is no defence to state that had the instrument been presented at the other place at would have been paid.
If there is no place of payment in the body of the instrument but it is mentioned in a seperate memorandum or in the margin of the instrument, it is not a part of the original contract and it will not be allowed by itself to control its operation. It is after all a question of intention to be gathered from the instrument.
If the maker of a promissory note does not reside at the place specified in the note itself for presentment and the note is in possession of the person in whose favour it has been executed, the provision of section 69 are held in abeyance and no presentment is necessary. Where the holder of a promissory note is able to produce and show it to the maker and return it to him on receiving payment there is compliance with section 69 of the Act. The jurisdiction of the court is determined by the place of payment. The section has no application where section 69 of the Partnership Act applies.