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negotiable-instruments:section-73

Presentment of cheque to charge any other person

Section 73 of the Negotiable Instruments Act,1881.

A cheque must, in order to charge any person except the drawer, be presented within a reasonable time after delivery thereof by such person.

Any person, except the drawer, means an indorser. An indorser is discharged, if the presentment is not duly made within a reasonable time after endorsement and delivery. What is a reasonable time is a question of fact in each case and is to be determined with reference to the nature of the instrument, the usage of trade and of bankers and the facts of the particular case. A cheque is meant for immediate payment after delivery thereof and not for circulation, and, therefore, a holder of a cheque cannot extend time for payment by indorsement and putting it on circulation. A cheque not presented within a reasonable time becomes stale and the bona fide holder of a stale cheque for consideration cannot maintain an action.

Created on 2021/02/20 17:04 by LawPage • Last modified on 2021/02/20 17:04 by LawPage