NIA 135 — Law of place of payment governs dishonour

Negotiable Instruments Act, 1881

Statutory text

Where a promissory note, bill of exchange or
cheque is made payable in a different place from that in which it is made or indorsed, the law of the place
where  it  is made  payable  determines  what  constitutes  dishonour  and  what  notice  of  dishonour  is sufficient.
Illustration
A bill of exchange drawn and indorsed in

[India], but accepted payable in France, is dishonoured. The indorsee causes it to
be protested for such dishonour, and gives notice thereof in accordance with the law of France, though not in accordance with the rules herein contained in respect of bills which are not foreign. The notice is sufficient.

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