chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
National ID and Registration Act, 2020

12. Correction of Details: (1) If there is any error in the details mentioned in the Identity Card or if details need to be added or removed, the concerned person shall submit an application in the prescribed format to the prescribed body or authority for correcting or adding/removing such details.
(2) Details may be corrected based on the application under sub-section (1).
(3) The identity number shall not change when correcting details under this section. 13. Cancellation of Identity Card: (1) Amended by the Some Nepal Acts Amendment Act, 2082.The Ministry or an authority designated by the Ministry may cancel the Identity Card in any of the following circumstances:-
(a) If a person who is not eligible under Section 4 has obtained an Identity Card,
(b) If an Identity Card was obtained by submitting false details,
(c) If a foreign citizen has obtained an Identity Card contrary to this Act,
(d) If the person who obtained the Identity Card is not a Nepali citizen.
(2) A person aggrieved by a decision to cancel the Identity Card under sub-section (1) may appeal to the concerned High Court within thirty-five days from the date of knowledge of such decision. 14. Identity Card Ceasing to Be Effective: (1) If the person who obtained the Identity Card dies, the Identity Card of the deceased shall cease to be effective.
(2) In the situation where the Identity Card ceases to be effective under sub-section (1), the record thereof shall be updated and the details of the deceased contained in the data repository and records shall be kept secure. 15. Recording of Inquiry: (1) If action for cancellation of the Identity Card obtained by a person under Section 13 is initiated, the Department shall record in the electronic record related to the Identity Card of the concerned person that the action is ongoing, prohibiting the use of the Identity Card until the conclusion of the action.
(2) If the Identity Card appears to be maintainable from the action under sub-section (1), arrangements shall be made so that the record of such inquiry remains only in the data repository. 16.
National ID and Registration Act, 2020

16. Provision Regarding Duplicate: (1) If the Identity Card obtained under this Act is lost, destroyed, becomes unusable, if the details on the visual side of the Identity Card need to be changed, or if the Identity Card cannot be used for other reasons, the concerned person shall submit an application in the prescribed format to the local authority to obtain a duplicate thereof.
(2) If an application is submitted under sub-section (1) and upon inquiry the fact is found to be true, the local authority shall forward it to the Department with a recommendation, and the Department shall record such fact and provide a duplicate Identity Card to the applicant upon collecting the prescribed fee.
(3) Other provisions relating to the duplicate Identity Card shall be as prescribed. Chapter 3
Provisions Relating to Registration

17. Registrar: (1) For the purpose of this Act, the Director General of the Department shall be the Central Registrar.
(2) A civil servant authorized to act as the administrative chief of the ward office of each Rural Municipality or Municipality, an officer designated to perform registration related work at Nepali missions abroad, and other office bearers designated by the Director General shall act as the Local Registrar, working under the authority of the Central Registrar.
(3) For registration management, each ward office and other offices designated by the Ministry shall act as local registration offices. 18.
National ID and Registration Act, 2020

18. Notification of Vital Events: (1) In the following circumstances, the following persons shall notify the Local Registrar's office within thirty-five days of the occurrence of such event, by filling in the prescribed form, for the registration of the vital event:-
(a) Notification of birth by the father or mother, and in their absence, by a member of the family who has attained the age of eighteen years,
(b) Notification of death by the father, mother, spouse, son or daughter, and in their absence, by a member of the family who has attained the age of eighteen years,
(c) Notification of marriage by both the husband and wife,
(d) Notification of divorce by any one of the concerned persons whose marriage has been dissolved,
(e) Notification of migration by a member of the family who has attained the age of eighteen years.
(2) If the vital event occurred outside Nepal, the person obligated to give notice under sub-section (1) shall give notice to the concerned mission within thirty-five days, or within thirty-five days after arriving in Nepal at the Local Registrar's office.
(3) The person obligated to give notice of a vital event under sub-section (1) may give an authorized power of attorney to any person for the registration of such notice.
(4) In the absence of a person obligated to give notice of a vital event under sub-section (1), the person prescribed shall give such notice.
(5) Arrangements may be made so that notices of vital events under this section can be given through electronic means as prescribed. 19.
National ID and Registration Act, 2020

19. Registration of Vital Events: (1) Upon receipt of the notice under Section 18, the Local Registrar or the authorized employee of the mission shall register such event in the relevant register book by doing the following:-
(a) Checking whether the form filled by the person giving the notice is correct, and if not correct, getting it corrected, and
(b) If the person giving the notice is illiterate, filling the form himself or causing it to be filled according to what the person says, reading it out, and obtaining the person's thumbprint.
(2) While registering a notice of divorce, registration shall be done after also considering the decision made by the court in that regard.
(3) If a person comes for registration of a vital event after the expiry of the period under sub-section (1) or (2) of Section 18, such vital event shall be registered upon collecting the prescribed late fee.
(4) After a vital event is registered under this section, the Local Registrar or the mission shall send the details thereof to the Department.
(5) Based on the details received under sub-section (4), the Department shall update the details in the personal record of the concerned person.
(6) If any vital event of a foreigner residing in Nepal is required to be registered, the foreigner shall notify the Local Registrar of the place where he/she resides along with the prescribed evidence.
(7) While giving notice under sub-section (6), in the case of a foreign citizen whose diplomatic mission is present in Nepal, a recommendation from the concerned diplomatic mission shall also be submitted.
(8) After receiving the notice under sub-section (6), the Local Registrar shall conduct necessary inquiries and register the vital event of such foreigner.
(9) Other provisions relating to giving notice of vital events of foreigners residing in Nepal and registering vital events shall be as prescribed. 20. Issuance of Certificate: (1) After the notice of a vital event is registered under Section 19, the Local Registrar shall issue a certificate of registration of the vital event to the person under sub-section (1) of Section 18.
(2) While registering vital events other than the death registration of a person residing in a district where the Identity Card has come into effect pursuant to Section 3, the certificate of registration of such vital event shall be issued only after an identity number has been obtained under this Act.
(3) Other provisions relating to the issuance of certificates of vital events under this section shall be as prescribed. 21.
National ID and Registration Act, 2020

21. Prohibition on Registration and Issuance of Certificate: (1) Notwithstanding anything contained elsewhere in this Act, vital events including marriages that are automatically void pursuant to the prevailing law shall not be registered and certificates thereof shall not be issued.
(2) If a vital event is brought for registration under sub-section (1), a separate record of such event shall be kept and it shall be submitted to the concerned body or authority for action pursuant to the prevailing law.
(3) Nothing contained in this section shall adversely affect the matter of having to register the birth of a child born as a result of a marriage that is automatically void. 22. Issue of Copy of Registration Certificate: (1) If the registration certificate issued under Section 20 is lost, destroyed in any way, or its unusability is proven, the concerned person shall submit an application to the office of the concerned Local Registrar.
(2) If the content of the application submitted under sub-section (1) appears reasonable, the concerned Local Registrar shall issue a copy of the registration certificate upon collecting the prescribed fee. 23. Deployment of Staff for Preparing Family Roster: (1) If it appears necessary to prepare a roster for the purpose of registering vital events and preparing civil records, the Ministry may deploy staff for such work.
(2) It shall be the duty of the concerned person to provide the details requested or answer the questionnaire asked by the staff deployed under sub-section (1). 24. Validity of Registration: The certificate of registration provided under Section 20 shall be evidence of the occurrence of the vital event. Such evidence may be submitted to any office and court and used in personal transactions. Provided that, if a person is proven to have obtained the registration certificate by submitting false details, such registration certificate shall be cancelled by the local authority. 25. Correction of Details: Amended by the Some Nepal Acts Amendment Act, 2082.(1) If the name, surname, age or other details mentioned in a certificate of registration of a vital event need to be corrected, the concerned person may submit an application once in the prescribed format to the Local Registrar's office.
(2) Upon receipt of the application submitted under sub-section (1), the Local Registrar shall conduct an inquiry in that regard and, if deemed appropriate, may correct Added by the Some Nepal Acts Amendment Act, 2082.once the age, name, surname or other details contained in the register book and the registration certificate.
(3) The Local Registrar shall also provide information of the correction made under sub-section (2) to the Department.
National ID and Registration Act, 2020

Based on the details received, if the concerned person has an identity number, the Department shall also correct the details of such person in that identity number.
(4) Notwithstanding anything contained in the prevailing law, the Amended by the Some Nepal Acts Amendment Act, 2082.details of any person contained in the register book under this Act and the registration certificate provided shall not be corrected more than once. 26. Inspection of Vital Event Register Book: If the concerned person wishes to see the vital event and civil record register book kept at the office of the concerned Local Registrar, the concerned Local Registrar shall allow inspection of the register book upon collecting the prescribed fee. 27. Sending of Details: (1) The Local Registrar shall send details of the vital events registered each month to the Central Registrar and the concerned body of the provincial government as soon as possible.
(2) Based on the details received under sub-section (1), the Central Registrar and the concerned body of the provincial government shall update the records and publish an annual report. 28. Duty to Render Assistance: (1) If a Rural Municipality, Municipality, or Ward Office learns that a vital event requiring registration under this Act has occurred, it shall remind and persuade the concerned person and render necessary assistance in registering the notice of such event.
(2) It shall be the duty of the concerned Rural Municipality, Municipality, and the body administering local administration to render necessary assistance to the staff or Registrar deployed in the course of work related to the National Identity Card and Registration required to be performed under this Act or the Rules framed under this Act. 29. Special Provisions Relating to Event Registration: (1) A person who adopts a son or daughter pursuant to the prevailing law shall register the notice thereof with the concerned Local Registrar.
(2) If a person gives birth to a stillborn child or a child dies immediately after birth, notice thereof may be registered with the Local Registrar.
(3) Other provisions relating to the registration of notices submitted under sub-section (1) or (2) and issuing certificates after registering events under this section shall be as prescribed. Chapter 4
Electronic Data Repository Management

30.
National ID and Registration Act, 2020

Chapter 4
Electronic Data Repository Management

30. Establishment of Electronic Data Repository: (1) There shall be a central electronic data repository for the integrated storage and use of personal and biometric details collected under this Act.
(2) Arrangements shall be made to link the data repository established under sub-section (1) with data repositories existing in various government offices and bodies.
(3) Details collected by the province, district and local level pursuant to the prevailing law may be linked to the data repository under sub-section (1).
(4) Arrangements shall be made for backup of the data stored under sub-section (1) at the Department as well as at a government data center designated by the Government of Nepal.
(5) Other provisions relating to data entry, backup, data correction and use in the data repository under this section shall be as prescribed. 31. Use of Details Collected by Other Bodies: At the time of commencement of this Act, the Department may, by a decision of the Government of Nepal, use for the purposes of the Identity Card the personal or biometric details of a person collected by an authorized body pursuant to the prevailing law, and details and data available in electronic form. 32. Updating Details: (1) The Department may update the data repository based on the following:-
(a) Vital events registered under this Act and the prevailing law,
(b) Details received from the concerned office or body as prescribed.
(2) For the purpose of sub-section (1), in the case of a district where the Identity Card has come into effect under Section 3, the details of such person in the data repository shall be automatically updated based on the registration of the vital event.
(3) In the case of a district where the Identity Card has not come into effect, the details maintained by registering vital events shall be recorded through electronic means, and details shall be updated by linking such record with the data repository.
(4) While updating details in the data repository, the update shall be made based on the identity number of the person whose details are to be updated.
(5) In case of doubt regarding the details registered by a person, the details in the electronic data repository shall be considered the primary basis. 33.
National ID and Registration Act, 2020

33. Biometric and Personal Details to Be Confidential: (1) The biometric and personal details of a person in the data repository shall be kept confidential and shall not be made available to any other body except in the situation under Section 34.
(2) Notwithstanding anything contained in sub-section (1), for the following purposes, the Department may confidentially verify, deduplicate and identify the details of a person in the data repository and provide the result thereof to the concerned body or authority pursuant to law:-
(a) If requested by an authority authorized pursuant to the prevailing law for the investigation and prosecution of an offense,
(b) If requested by a court,
(c) If requested by the concerned person. 34. Access to and Use of Data Repository: (1) For the purpose of providing public services, a body designated by the Government of Nepal may use the data and details in the Department as required, maintaining the personal privacy of the individual.
(2) Bodies and institutions wholly owned by the Government of Nepal may be permitted to use the data and details in the Department as prescribed, maintaining the personal privacy of the individual.
(3) For the purpose of verifying the details of the concerned person, a body providing services to citizens pursuant to the prevailing law may be given controlled access to the data in the Department as prescribed.
(4) The extent to which other bodies may have access to or use the data and details collected and stored under this Act shall be as determined by the Government of Nepal, without prejudice to Section 33. 35.
National ID and Registration Act, 2020

35. Security of Data Repository: (1) For the systematic and secure maintenance of the data repository, there shall be a Data Security Committee as follows:-
(a) Secretary of the Ministry - Chairperson
(b) Secretary, Office of the Prime Minister and Council of Ministers - Member
(c) Director General - Member-Secretary
(2) If a situation arises where all the details of a person in the data repository need to be obtained at once for the purpose of this Act, the Data Security Committee under sub-section (1) shall make such data obtainment only with the mandatory presence of all members of that Committee.
(3) If, as a result of a disaster or technical glitch in the system, regular work cannot be performed from the primary data repository at the Department, the Data Security Committee under sub-section (1) shall make necessary arrangements to resume work from the backup data repository at the Department or a government data center.
(4) The Data Security Committee under sub-section (1) shall cause necessary arrangements to be made for technical security including security of the data repository in the Identity Card and registration management system, security of vital event registration records, security of the Identity Card, network-level security, and application-level security.
(5) Necessary arrangements may be made so that the concerned person can view the details of access obtained by any body or person to the personal details of that person in the data repository, as prescribed.
(6) The meeting of the Committee under sub-section (1) shall be held at least twice a year. Other procedures relating to the meeting of the Committee shall be as determined by the Committee itself. Chapter 5
Institutional Arrangements

36. Authority to Give Directions: The Government of Nepal may make necessary decisions and give directions on policy matters including the operation, management, and security of the National Identity Card and Registration System. 37.
National ID and Registration Act, 2020

Chapter 5
Institutional Arrangements

36. Authority to Give Directions: The Government of Nepal may make necessary decisions and give directions on policy matters including the operation, management, and security of the National Identity Card and Registration System. 37. Coordination Committee: (1) For maintaining coordination among concerned bodies regarding the management, implementation, access to and use of the data repository of the National Identity Card and Registration, and for performing necessary work related to the implementation of the Identity Card and Registration, there shall be a National Identity Card and Registration Coordination Committee as follows:-
(a) Secretary of the Ministry - Chairperson
(b) Inspector General of Nepal Police - Member
(c) Joint Secretary, Office of the Prime Minister and Council of Ministers (looking after the concerned Division) - Member
(d) Joint Secretary of the Ministry (looking after the concerned Division) - Member
(e) Joint Secretary, Ministry of Finance, Government of Nepal (looking after the concerned Division) - Member
(f) Joint Secretary, Ministry of Federal Affairs and General Administration, Government of Nepal (looking after the concerned Division) - Member
(g) Joint Secretary, Ministry of Law, Justice and Parliamentary Affairs, Government of Nepal (looking after the concerned Division) - Member
(h) Joint Secretary, Ministry of Labour, Employment and Social Security, Government of Nepal (looking after the concerned Division) - Member
(i) Director General, Central Bureau of Statistics - Member
(j) Director General, Department of Information Technology - Member
(k) Director General - Member-Secretary
(2) The procedures relating to the meetings of the Coordination Committee shall be as determined by the Committee itself.
(3) Officials of other concerned bodies may be invited to the meetings of the Coordination Committee as required. 38. Functions, Duties and Powers of the Coordination Committee: The functions, duties and powers of the Coordination Committee shall be as follows:-
(a) To coordinate the Identity Card and registration management work,
(b) To monitor and supervise the work and proceedings of the Department,
(c) To carry out necessary coordination to implement the directives received from the Ministry regarding Identity Card and registration management,
(d) To implement the security related provisions determined and updated by the Data Security Committee,
Provided that such security methods determined and updated for the security of the system shall remain confidential.
(e) To recommend to the Government of Nepal regarding the upgrade, expansion of scope, modification, and overall management of the Identity Card and registration system,
(f) To perform other functions as prescribed. 39.
National ID and Registration Act, 2020

39. Department of National Identity Card and Registration: (1) For the purpose of performing work related to National Identity Card and Registration management under this Act, there shall be a Department of National Identity Card and Registration under the Ministry.
(2) The Department may establish branch offices or units and operate its functions as per the decision of the Government of Nepal. 40. Director General: (1) An officer of the Nepal Administrative Service of the gazetted first class shall serve as the Director General of the Department.
(2) The main responsibility for the operation, management, security, coordination and supervision of the Identity Card and registration system shall be of the Director General.
(3) In addition to the functions, duties and powers written elsewhere in this Act, the functions, duties and powers of the Director General shall be as follows:-
(a) To collect or cause to collect applications for the National Identity Card and Registration,
(b) To conduct inquiries into applications submitted for the National Identity Card and Registration, register them, and issue the identity number and Identity Card,
(c) To make necessary arrangements for securely and systematically maintaining the data repository and records related to the Identity Card and Registration,
(d) To maintain the confidentiality of the data repository and related records,
(e) To make arrangements for the exchange of information between the National Identity Card and Registration System and the data repositories and information technology systems of other bodies,
(f) To coordinate, monitor, supervise and evaluate the work proceedings performed by the Department as its administrative chief,
(g) To perform or cause to perform work during the management of the National Identity Card and Registration System by also arranging necessary security in coordination with security agencies,
(h) To implement or cause to implement the Government of Nepal's policy on National Identity Card, Registration and Social Security,
(i) To contact and coordinate with national and international bodies and organizations related to Identity Card and registration technology upon obtaining approval from the Government of Nepal, and to exchange necessary assistance for technology development and capacity building with such bodies or organizations,
(j) To implement or cause to implement Acts, Rules, directives, instructions, procedures and standards related to National Identity Card, Registration and Social Security,
(k) To perform or cause to perform other functions assigned from time to time by the Government of Nepal, the Coordination Committee and the Data Security Committee. Chapter 6
Offenses and Penalties

41.
National ID and Registration Act, 2020

Chapter 6
Offenses and Penalties

41. Offenses and Penalties: (1) If anyone commits the following act, it shall be deemed an offense under this Act:-
(a) Destroying, damaging, deleting, tampering with, making unusable, providing to an unauthorized person, creating false information, stealing, or damaging the data repository, computer system or network infrastructure and other physical infrastructure, electronic data or data system with the intention of destroying the details or information in the record or data repository related to the National Identity Card and Registration,
(b) Stealing, damaging, destroying, or making unauthorized changes to any computer program, computer software, computer system, or computer resource code (source code) used for the data repository, communication network, or printing of the Identity Card,
(c) Submitting false details or preparing false or fake documents for obtaining the Identity Card or certificate of registration of a vital event,
(d) Counterfeiting or forging the Identity Card or certificate of registration of a vital event,
(e) Breaching the confidentiality of details contained in the data repository, Identity Card, and related records except as provided in this Act or the prevailing law,
(f) Issuing or causing to issue Identity Cards or certificates of registration of vital events despite clear basis that the details are false,
(g) Obstructing or hindering the work or service delivery related to
Negotiable Instruments Act, 1977

Negotiable Instruments Act, 2034 (1977)

Royal Seal and Date of Publication
2034.09.18

Amending Acts

1. Some Nepal Acts Amendment Act relating to Finance, 2039 2039.07.03
2. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 2066.10.07
3. Some Nepal Acts Amendment Act to Make Compatible with the Constitution of Nepal, 2075 2075.11.19
4. Banking Offence and Punishment (Second Amendment) Act, 2082 2082.01.24

Act No. 26 of the year 2034



An Act Made to Provide for Negotiable Instruments

Preamble: Whereas it is expedient to define negotiable instruments and to make other arrangements relating thereto for the purpose of systematizing banking transactions;

Now, therefore, His Majesty King Birendra Bir Bikram Shah Deva has enacted this Act on the advice and with the consent of the National Panchayat. Chapter-1
Preliminary

1. Short title, extent and commencement: (1) This Act may be called the "Negotiable Instruments Act, 2034."

(2) It extends to the whole of Nepal omitted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.

(3) This Act shall come into force on such date as the Government of Nepal may, by notification in the Nepal Gazette, appoint. This Act came into force from 2039 Ashadh 14. (Nepal Gazette dated 2039.3.14)

2. Definitions: In this Act, unless the subject or context otherwise requires,-

(a) "Bank" means a bank established under the prevailing law.

(b) "Banker" means an institution carrying on banking business and includes a post office performing the work of a savings bank.

(c) "Security" means property or a document relating thereto which has been or is to be kept as collateral pursuant to the prevailing law at the time of taking or giving credit.

(d) "Negotiation" means the transfer of a negotiable instrument in such manner as to constitute the transferee the holder thereof.

(e) "Negotiable instrument" means a promissory note and a bill of exchange.

(f) "Promissory note" means an instrument in writing (not being a government or bank note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money on a fixed date or on demand, to a certain person, or to the order of that person, or to the bearer thereof.
Negotiable Instruments Act, 1977

Provided that the said term shall not include a document made under amended by the Some Nepal Acts Amendment Act to Make Compatible with the Constitution of Nepal, 2075. "Chapter-15 of Part 4 of the Muluki Civil (Code) Act, 2074".

(g) "Bill of exchange" means an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money on a specified date, or after a certain period, or on demand, to a certain person, or to the order of that person, or to the bearer thereof.

(h) "Cheque" means a bill of exchange drawn on a specified banker and payable on demand.

(i) "Draft" means a bill of exchange drawn by one bank upon another office of the same bank, payable on demand to a certain person or to the order of that person.

(j) "Payee" means the person named in the negotiable instrument to whom or to whose order the payment is to be made.

(k) "Holder" means any person entitled in his own name to the possession thereof and to receive payment of the amount due thereon from the parties thereto.

(l) "Drawer" means the person who makes or draws a bill of exchange.

(m) "Drawee" means the person directed to pay the amount of the bill of exchange.

(n) "Drawee in case of need" means a person specified in the bill of exchange or endorsed thereon as a person to be resorted to in case the drawee dishonours the bill by non-acceptance or non-payment.

(o) "Holder in due course" means any person who for valuable consideration becomes the possessor of a negotiable instrument payable to bearer before the amount mentioned in it becomes payable, or in the case of an instrument payable to order, the payee or the endorsee thereof, without having sufficient cause to believe that the defect referred to existed in the title of the person from whom he derived his title.

(p) "Payment in due course" means payment made to the person entitled to receive the amount specified in the negotiable instrument, without negligence and in good faith.

(q) "Endorsement" means the signing of a negotiable instrument on the front or back thereof, or on a separate document attached thereto, for the purpose of negotiation.

(r) "Endorsement in blank" means an endorsement where the endorser merely signs his name.

(s) "Endorsement in full" or "special endorsement" means an endorsement which specifies the person to whom or to whose order payment is to be made.

(t) "Bill payable on demand" means a bill of exchange payable at sight or on presentation.

(u) "Date of payment" means the date specified in the bill of exchange as the date on which payment is to be made.

(v) "Public holiday" means a day declared by the Government of Nepal to be a public holiday, and includes a day on which banking business is not transacted.

(w) "Notary Public" means a person appointed or specified under Section 106.

(x) "Prescribed" or "as prescribed" means prescribed by this Act or by rules made under this Act.
Negotiable Instruments Act, 1977

Chapter-2
Negotiable Instruments, Parties Thereto and Their Rights and Liabilities

3. Ambiguous instrument: Where a bill of exchange or a promissory note is ambiguous as to whether it is a bill of exchange or a promissory note, the holder may treat it as either at his option. 4. Right of holder: The holder may transfer a negotiable instrument. 5. Instrument without date of payment: A negotiable instrument without a date of payment shall be payable on demand. 6. Difference between figures and words: If there is a difference between the amount stated in figures and that stated in words in a negotiable instrument, the amount stated in words shall be accepted. 7. Additional days of grace: Every negotiable instrument not expressed to be payable on demand, at sight, or on presentation, shall be payable on the fourth day after the date of payment. 8. Payment after a fixed period: A negotiable instrument payable after a fixed period, or after a fixed period from presentation, or after the occurrence of a certain event, or after a fixed period from the occurrence of such event, shall be payable as specified in the instrument. 9. Calculation of date of maturity: In calculating the date of maturity of a negotiable instrument payable after a period, the day on which the instrument is dated or presented for acceptance shall be excluded. 10. When date of payment falls on a public holiday: If the date of payment of a negotiable instrument falls on a public holiday, the payment shall be deemed to be due on the next following day. 11. Capacity of parties: Every person capable of contracting under the prevailing law may bind himself and be bound by the making, drawing, accepting, endorsing, transferring, and negotiating of negotiable instruments. Provided that, if such an act is done by a minor, all other parties except the minor shall be liable. 12. Agent: The principal who confers authority on an agent to perform an act shall be liable for the act done by the agent. 13. Liability of agent: If an agent signs a bill of exchange without indicating that he signs as an agent, or without indicating that he is not personally liable, the agent shall also be personally liable for such bill of exchange. 14. Liability of legal representative: If a person signs a bill of exchange as the legal representative of a deceased person without specifying that he is liable only to the extent of the property received by him, he shall be fully personally liable for such negotiable instrument. 15.
Negotiable Instruments Act, 1977

14. Liability of legal representative: If a person signs a bill of exchange as the legal representative of a deceased person without specifying that he is liable only to the extent of the property received by him, he shall be fully personally liable for such negotiable instrument. 15. Liability of drawer: If a bill of exchange is dishonoured by the acceptor or the drawee, the drawer shall be bound to compensate the holder, provided that due notice of dishonour is given to the drawer. 16. Liability of bank paying cheque: A bank shall pay a cheque presented to it if it is in due course and if the drawer has sufficient deposits. If the drawer or the holder in due course suffers any loss or damage due to non-payment of such cheque, the bank shall also pay compensation therefor under this Act. 17. Liability of maker of promissory note or acceptor of bill of exchange: The maker of a promissory note or the acceptor of a bill of exchange shall pay the negotiable instrument when it falls due and is duly presented for payment. If any loss or damage is caused to the party entitled to payment due to non-payment of such negotiable instrument, the maker of the promissory note or the acceptor of the bill of exchange shall also pay compensation therefor under this Act. 18. Persons capable of accepting a bill of exchange: (1) Only the drawee or the drawee in case of need can accept a bill of exchange, thereby binding himself to pay.

(2) If a bill of exchange has more than one drawee, any one drawee may accept it for himself only. Provided that, if such drawees are partners or are authorized, one may accept the bill of exchange for the other. 19. Liability of endorser: Every endorser who endorses and transfers a negotiable instrument without specifying that his liability is limited or that he has no liability, shall be liable to each subsequent holder, unless otherwise agreed. 20. Liability of prior parties to holder in due course: Until payment in due course of a negotiable instrument, every prior party shall be liable to the holder in due course. 21. Liability as principal debtor: Unless otherwise agreed, before acceptance of a negotiable instrument, the liability of the maker or drawer thereof is that of a principal debtor, and after acceptance, the liability of the acceptor is that of a principal debtor, and the liability of other parties is that of a surety. 22. Liability of prior party as principal debtor to each subsequent party: Unless otherwise agreed, among parties liable as sureties, each prior party shall be liable as principal debtor to each subsequent party.
Negotiable Instruments Act, 1977

22. Liability of prior party as principal debtor to each subsequent party: Unless otherwise agreed, among parties liable as sureties, each prior party shall be liable as principal debtor to each subsequent party. 23. Liability of surety: Notwithstanding anything contained in the prevailing law, a person who becomes a surety on an instrument shall not be entitled to claim that recovery may be made from his property only if it cannot be recovered from the property of the principal debtor; recovery may be made directly from the surety. 24. Release of endorser from liability: The holder shall not, without the consent of the endorser, impair the right of recourse of the endorser against his prior parties. If the right is so impaired, the endorser shall be released from liability to the holder. 25. Liability despite forgery: A person who accepts a bill of exchange knowing it to be forged or having reason to know it to be forged shall not be discharged from his liability on the ground that the bill of exchange is forged. 26. Negotiable instrument without consideration: A negotiable instrument made, accepted, endorsed, or transferred contrary to the prevailing law does not create an obligation to pay between the parties doing such act. If such negotiable instrument is transferred, with or without endorsement, to a holder, the holder so acquiring it may recover the amount thereof from the transferor or any prior party. 27. Right to duplicate: If a holder of a negotiable instrument which has been lost requests, the drawer or maker shall give another copy thereof upon taking necessary security and the expense of preparing the copy. Chapter-3
Negotiation and Endorsement

28. Transfer: The making, acceptance, or endorsement of a negotiable instrument is not complete until delivery thereof. 29. Negotiation by delivery: A negotiable instrument payable to bearer may be negotiated by delivery. If the instrument is payable to a specified person or his order, it must be endorsed by the holder thereof. 30. Effect of endorsement: Upon endorsement and delivery of a negotiable instrument, the title is transferred. The holder may further endorse it or receive payment himself. 31. Alteration of endorsement: The holder of a bill of exchange endorsed in blank may convert the blank endorsement into a special endorsement. 32. Restriction on endorsement: The right of a holder to endorse a negotiable instrument may be restricted by prohibiting further negotiation or by specifying that it may only be endorsed as mentioned in the endorsement. Provided that such restriction shall not apply to a negotiable instrument payable to bearer. 33.
Negotiable Instruments Act, 1977

32. Restriction on endorsement: The right of a holder to endorse a negotiable instrument may be restricted by prohibiting further negotiation or by specifying that it may only be endorsed as mentioned in the endorsement. Provided that such restriction shall not apply to a negotiable instrument payable to bearer. 33. Holder deriving title from holder in due course: A holder who derives title to a negotiable instrument from a holder in due course shall have the same rights as the holder in due course. 34. Right to endorse or negotiate: Every party to a negotiable instrument may endorse or negotiate it, except where a restriction has been imposed under Section 32. 35. Endorsement without liability: An endorser may endorse a negotiable instrument by expressly excluding his own liability thereon. 36. Endorsement for part of amount: A negotiable instrument endorsed for part only of the amount payable cannot be negotiated. 37. Negotiation by legal representative: If the endorser of a negotiable instrument payable to order dies before delivering the instrument, his legal representative cannot negotiate it by mere delivery without endorsement. 38. Negotiable instrument obtained unlawfully: A person who obtains a negotiable instrument by means of an offence, fraud, or unlawful means, or a person who finds a lost negotiable instrument, shall not be entitled to claim the amount specified therein from the maker, acceptor, or holder thereof. 39. Overdue or dishonoured negotiable instrument: The rights of a holder who takes a dishonoured bill of exchange (by non-acceptance or refusal to pay) with knowledge, or takes a negotiable instrument after the date of maturity, shall not be greater than those of the person from whom he took it. Chapter-4
Presentation

40. Presentment for acceptance: A bill of exchange payable after sight must be presented for acceptance to the drawee within business hours on a business day. If no day or place for presentment is specified, the person entitled to demand acceptance must, within a reasonable time, make proper search for the drawee and present it to him within business hours on a business day. If not so presented, no other party shall be liable to the person failing to present. Provided that, if after proper search the drawee cannot be found, the bill of exchange shall be deemed to be dishonoured. 41. Time allowed to drawee: If the drawee demands time to consider whether to accept or not a bill of exchange presented for acceptance, the holder must allow a period of two days, excluding public holidays. 42.
Negotiable Instruments Act, 1977

41. Time allowed to drawee: If the drawee demands time to consider whether to accept or not a bill of exchange presented for acceptance, the holder must allow a period of two days, excluding public holidays. 42. Presentment of promissory note: A promissory note payable after a fixed period from sight must be presented to the maker for sight within a reasonable time, within business hours on a business day, by the person entitled to payment. If not so done, no other party shall be liable to the person failing to present. 43. Presentment for payment: A promissory note, a bill of exchange, and a cheque must be presented for payment within business hours to the maker, acceptor, and drawee respectively, by the holder or his agent. If not so presented, the other parties specified in the instrument shall not be liable to such holder. 44. Instrument payable at specified place: A negotiable instrument directed to be paid at a specified place must be presented for payment at that place. 45. Instrument without place of payment: If no place for presentment is specified, a promissory note must be presented for payment to the maker, and a bill of exchange to the acceptor or drawee, at his place of business or residence. 46. If place of business or residence uncertain: If the place of business or residence of the maker, acceptor, or drawee of a negotiable instrument not specifying a place of presentment is uncertain, the instrument must be presented for payment at the place where he is found. 47. Presentment of cheque when claim against drawer: (1) No person shall make a claim against the drawer unless the cheque is presented at the bank on which it is drawn.

(2) If any loss is caused to any person due to non-presentment of a cheque within a reasonable time, such loss amount shall not be claimable against the drawer. 48. Delay not deemed in presentment: Delay in presentment for acceptance or payment shall be excused if it is caused by circumstances beyond the control of the holder and not due to his misconduct, negligence, or default. Provided that, after the cause of delay ceases, the instrument must be presented for acceptance or payment within a reasonable time. 49. Presentment within reasonable time: The holder of a bill of exchange payable on demand must present it for payment within a reasonable time. 50. Presentment to agent or legal representative: A promissory note, bill of exchange, or cheque may be presented for acceptance or payment to the agent of the maker, acceptor, or drawee respectively.
Negotiable Instruments Act, 1977

50. Presentment to agent or legal representative: A promissory note, bill of exchange, or cheque may be presented for acceptance or payment to the agent of the maker, acceptor, or drawee respectively. Provided that, if such maker, acceptor, or drawee is dead, the instrument must be presented to his legal representative. 51. When presentment for payment unnecessary: A bill of exchange shall be deemed to be dishonoured, and presentment for payment thereof shall be unnecessary, in the following circumstances:-

(a) If the maker, acceptor, or drawee intentionally obstructs the presentment, or

(b) If the instrument specifies that it must be presented at a specified place for payment, and the person liable to pay or his agent is not present at that place during business hours on a business day, or

(c) If the person liable to pay closes his office during business hours on a business day, or

(d) If, despite making diligent efforts to present a negotiable instrument not specifying a place for presentment, the relevant party cannot be found. 52. Compensation for negligence or default: If a bill of exchange accepted payable at a particular bank is duly presented for payment and is dishonoured due to the negligence or default of the bank, causing loss or damage to the holder, such bank shall compensate the holder under this Act. Chapter-5
Payment, Interest, and Discharge from Liability

53. Payment: Subject to Section 56, payment of a negotiable instrument shall be made to the holder. Provided that a bank shall not be bound to pay a cheque or draft drawn upon it if it is not presented for payment within six months from the date of drawing. 54. Interest: Notwithstanding anything contained in the prevailing law, if a rate of interest is specified in a negotiable instrument, it shall be paid accordingly. Provided that, when calculating interest for compensation or damages, the highest interest rate charged by commercial banks on loans shall be applied. 55. Delivery of instrument on payment: The person paying may inspect the negotiable instrument before payment and may take it after payment. 56.