Negotiable Instruments Act, 1881

When cheque not duly presented and drawer damaged thereby.

84. (1) Where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or person on whose account it is drawn had the right, at the time when presentment ought to have been made, as between himself and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of the banker to a larger amount than he would have been if such cheque had been paid.

(2) In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case.

(3) The holder of the cheque as to which such drawer or person is so discharged shall be a creditor, in lieu of such drawer or person, of such banker to the extent of such discharge and entitled to recover the amount from him.

Illustrations

(a)	-	A draws a cheque for Rs. 1,000, and, when the cheque ought to be presented, has funds at the bank to meet it. The bank fails before the cheque is presented. The drawer is discharged, but the holder can prove against the bank for the amount of the cheque.
(b)	-	A draws a ch .... To read the full section download the app from Google Play store Latest Job Openings View all ARTICLESHIP 23 May 2026 Article Assistants Acupro Consulting Gurgaon CA Inter View Details 04 May 2026 Content Writer Intern Interactive Media Pvt Ltd. New Delhi CA Inter View Details 11 May 2026 Post office Post office Anakapalle Others View Details 02 May 2026 Experience Audit Manager AGGARWAL SAMIR & CO New Delhi CA Inter View Details 16 May 2026 Audit clerk mgirt & co Bengaluru CA Inter View Details ARTICLESHIP 27 April 2026 CA Articled Assistant GM Corporate Solutions Noida CA Final View Details 11 May 2026 CA Dropout Patron Accounting LLP Pune CA Inter View Details 19 May 2026 Article, CA & Paid Assistant Positions Aggarwal Sarawagi and Co New Delhi CA View Details Share  Facebook  Twitter  Linkedin  Reddit  Email  Whatsapp  Gmail  Pocket  Print  Pinterest  PDF  Translate Whatsapp Groups GST Income Tax CA Final CA Inter CAclubindia Login at CAclubindia CAclubindia India's largest network for finance professionals User Name Password Remember Me Forgot Password ? Alternatively, you can log in using: Login with Google Don't have an account? Register Now click here to register