This document discusses different types of presentment required under negotiable instruments law. It covers (1) presentment for acceptance of bills of exchange, including to whom bills can be presented, time and place requirements, and effects of non-presentment; (2) presentment of promissory notes payable at sight; (3) presentment for payment of promissory notes, bills of exchange and cheques, including requirements for instruments payable on demand or at a future date; and (4) presentment of cheques to charge the drawee bank, including presentation of truncated cheques.

1. Name of Institution
Presentation
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2. Name of Institution
Introduction
• Negotiable Instruments, i.e., promissory note, bill of
exchange or cheque contain an order or promise to
pay a certain sum of money. Promissory note contains
promise and bill of exchange or cheque contains an
order to pay a certain sum of money. In case of bill of
exchange or cheque the drawee has no knowledge of
such order. Promissory note is an exception of it since
promisor himself promises so. The Act requires
presentment for acceptance in case of bill of exchange
and all instruments for payment.
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3. Name of Institution
What is presentment
• The Act requires presentment of negotiable
instruments. Presentment is simply a demand
by which holder of the instruments is required
to do as per direction of the instruments.
Direction may be either acceptance in case of
bill of exchange or payment in case of all
instruments.
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4. Name of Institution
Kinds of Presentment
• The scheme of the Act as to presentment may
be classified as following:
• (1) Presentment for acceptance (Section 61).
• (2) Presentment of promissory note for sight
(Section 62)
• (3) Presentment for payment (Section 64)
• (4) Presentment of cheque to charge the
drawee bank (Section 138).
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5. Name of Institution
• (1) Presentment for
Acceptance
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6. Name of Institution
(a) To whom presented and by whom accepted
• The person who can accept the bill are :-
• (i) drawee of the bill of exchange; or
• (ii) all or some of the several drawees; or
• (iii) a person named in the bill as a drawee in case of
need; or
• (iv) an acceptor for honour; or
• (v) the duly authorised agent of the drawee; (Section
75)
• (vi) In case of death, to his legal representative; and
• (vii) In case insolvency of drawee, to his assignee.
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7. Name of Institution
(b) Time and place of acceptance
• If the bill is directed to the drawee at a particular place,
it must be presented at that place and if at the due
date for presentment he cannot, after reasonable
search, be found thereon, the bill is dishonoured.
(Sec-69)
• If no place is specified in the instrument for
presentment for acceptance, such presentment may
be made to him in person wherever he' can be found
and if the drawee after reasonable search, be found
thereon, the bill is dishonoured. (Sec. 71)
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8. Name of Institution
(c) Presentment through post-office
• Where authorised by agreement or usage a
presentment through the post office by means
of a registered letter is sufficient.
• Section 39 of English Bills of Exchange Act,
1882 makes similar provisions.
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9. Name of Institution
(d) Within reasonable time
• It must be presented within reasonable time.
Section 105 provides that in determining
reasonable time regard shall be had to the
nature of the instrument and usual course of
dealing Section 75-A makes provision for
exercising delay where such delay is caused
by circumstances beyond the control of the
holder.
• It must be presented in business hours on a
business day.
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10. Name of Institution
When presentment for acceptance is necessary
• A bill of exchange may have to be presented for
acceptance before it is presented for payment. But it is
not every bill which has to be presented for
acceptance. Presentment for acceptance is necessary
only where-
• (i) the bill is payable at a given time after acceptance,
or
• (ii) the bill is payable after sight, or
• (iii) the bill expressly stipulates that it shall be
presented for acceptance before it is presented for
payment, or
• (iv) the bill is made payable at a place other than the
place of residence or business of the drawee.
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11. Name of Institution
When presentment for acceptance is not
necessary
• (1) Where the drawee is :
• (i) a dead person, or
• (ii) an adjudicated insolvent, or
• (iii) a fictitious person, or
• (iv) a person incompetent to contract, and
• (2) Where drawee cannot, after reasonable
search, be found, the bill is dishonoured.
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12. Name of Institution
Effects of non-presentment of acceptance
• To establish legal relation between the parties to a bill
of exchange or privity of contract acceptance by
drawee of the bill of exchange is required. If it is not
presented the following consequences may arise.
• (i) Drawee's liability under the bill will not arise.
• (ii) There will be no privity of the contract between the
parties.
• (iii) The bill of exchange will be deemed to be
dishonoured.
• (iv) No party thereto liable thereon to the person
making such default.
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13. Name of Institution
• (2) Presentment of promissory
note for sight
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14. Name of Institution
• 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.
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15. Name of Institution
• (3) Presentment for payment
Section
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16. Name of Institution
• Promissory notes, bills of exchange and cheques must
be presented for payment to the maker, acceptor or
drawee thereof respectively, by or on behalf of the holder
as hereinafter provided. In default of such presentment,
the other parties thereto are not liable thereon to such
holder.
• Where authorized by agreement or usage, a
presentment through the post office by means of a
registered letter is sufficient.
• Exception.-Where a promissory note is payable on
demand and is not payable at a specified place, no
presentment is necessary in order to charge the maker
thereof.
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17. Name of Institution
• Instrument Payable on demand
(Section 74)
• Section 74 provides that negotiable
instrument payable on demand must be
presented for payment within a reasonable
time after it is received by the holder. Thus
promissory notes, bills of exchange or
cheques payable on demand must be
presented for payment.
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18. Name of Institution
• Instrument payable after date or sight (Section 66)
• A promissory note or bill of exchange payable after date
or sight thereof, must be presented for payment at
maturity.
• Exception.-Exception to Section 64 says that a
promissory note payable on demand and is not payable
at a specified place, no presentment is necessary in
order to charge the maker thereof. This proviso makes
exception from presentment for payment of a promissory
note :
• (i) which is payable on demand, and
• (ii) which is not payable at a specified place.
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19. Name of Institution
• (4) Presentment of cheque in
order to charge the drawee bank
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20. Name of Institution
• Presentment of cheque for payment
• A cheque be also presented for payment to the drawee
bank within banking hours [any branch under C.B.S.
scheme]
• Presentment of Truncated Cheque [(Section 64(2)]:-
where an electronic image of a truncated cheque is
presented for payment, the drawee bank is entitled to
demand any further information regarding the truncated
cheque from the bank holding the truncated cheque in
case of any reasonable suspicion about the genuineness
of the apparent tenor of instrument, it is entitled to further
demand the presentment of the truncated cheque itself
for verification
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21. Name of Institution
Thank you
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