Section 78 - To whom payment should be made, Section 79 - Interest when rate specified, Section 80 - Interest when no rate specified : Negotiable Instruments Act 1881

To whom payment should be made? Interest when rate specified? Interest when no rate specified? To whom payment should be made, Interest when rate specified and Interest when no rate specified are defined under Section 78, 79 and 80 of Negotiable Instruments Act 1881

Section 78 of Negotiable Instruments Act 1881: "To whom payment should be made"

Subject to the provisions of section 82, clause (c), payment of the amount due on a promissory note, bill of exchange or cheque must, in order to discharge the maker or acceptor, be made to the holder of the instrument.

Section 79 of Negotiable Instruments Act 1881: "Interest when rate specified"

When interest at a specified rate is expressly made payable on a promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the principal money due thereon, from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs.

Section 80 of Negotiable Instruments Act 1881: "Interest when no rate specified"

When no rate of interest is specified in the instrument, interest on the amount due thereon shall, notwithstanding any agreement relating to interest between any parties to the instrument, be calculated at the rate of eighteen per centum per annum from the date at which the same ought to have been paid by the party charged, until tender or realization of the amount due thereon, or until such date after the institution of a suit to recover such amount as the Court directs.

Explanation : When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only from the time that he receives notice of the dishonour.