What is Dishonour by non-payment? By and to whom notice should be given? Dishonour by non-payment and By and to whom notice should be given are defined under Section 92 and 93 of Negotiable Instruments Act 1881
A promissory note, bill of exchange or cheque is said to be dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque makes default in payment upon being duly required to pay the same.
When a promissory note, bill of exchange or cheque is dishonoured by non- acceptance or non-payment, the holder thereof, or some party thereto, who remains liable thereon, must give notice that the instrument has been so dishonoured to all other parties whom the holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly liable thereon.
Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory note or the drawee or acceptor of the dishonoured bill of exchange or cheque.
Negotiable Instruments Act 1881
Section 81 - Delivery of instrument on payment, or indemnity in case of loss
CHAPTER VII OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
Section 82 - Discharge from liability
Section 83 - Discharge by allowing drawee more than forty-eight hours to accept
Section 84 - When cheque not duly presented and drawer damaged thereby
Section 85 - Cheque payable to order
Section 85A - Drafts drawn by one branch of a bank on another payable to order
Section 86 - Parties not consenting discharged by qualified or limited acceptance
Section 87 - Effect of material alteration
Section 88 - Acceptor or indorser bound notwithstanding previous alteration
Section 89 - Payment of instrument on which alteration is not apparent
Section 90 - Extinguishment of rights of action on bill in acceptor's hands
CHAPTER VIII OF NOTICE OF DISHONOUR
Section 91 - Dishonour by non-acceptance
Section 92 - Dishonour by non-payment
Section 93 - By and to whom notice should be given
Section 94 - Mode in which notice may be given
Section 95 - Party receiving must transmit notice of dishonour
Section 96 - Agent for presentment
Section 97 - When party to whom notice given is dead
Section 98 - When notice of dishonour is unnecessary
CHAPTER IX OF NOTING AND PROTEST