chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Public Roads Act, 1974

Road Department, and if the Road Department has specified any method or condition regarding such digging of the road or road boundary, the same shall also be complied with. 30. Penalties: (1) Omitted by the First Amendment. Any person who obstructs, opposes or creates a disturbance during the acquisition of land under Section 14 Omitted by the First Amendment. or during the posting of any notice under this Act shall be liable to imprisonment for up to three months or a fine of up to Amended by the Second Amendment. two thousand rupees, or both. Amended by the Second Amendment.(2) Any person who uproots or cuts trees planted under Section 16, or operates a vehicle with excessive weight contrary to Section 16A, or obstructs or opposes the taking of soil, stone or sand under Section 17, or does any act contrary to Section 18, shall be liable to a fine of up to two thousand rupees.

(3) Any person who does any act contrary to Sub-section (1) of Section 19, or obstructs or opposes the Road Department in carrying out any work under Sub-section (3) of the same section, shall be liable to imprisonment for up to one year or a fine of up to Amended by the Second Amendment. five thousand rupees, or both. Added by the Second Amendment.30A. Investigation and Diary of Cases: The investigation of cases relating to offenses punishable under this Act shall be conducted by an employee of at least the class of non-gazetted first class officer. After the completion of such investigation, the head of the concerned office of the Road Department shall file the case before the Road Department or the authority specified under Section 31. 31. Authority for Proceedings and Appeal Thereagainst: Amended by the First Amendment. (1) The authority to take proceedings and impose punishment for the offense of obstructing or opposing acquisition of land for the purpose of Section 14, cutting or uprooting trees planted under Section 16, obstructing or opposing the taking of soil, stone or sand under Section 17, placing, throwing, fixing, building, or hanging any goods so as to obstruct traffic on a public road contrary to Section 18, and doing any work within the public road or road boundary contrary to Section 19, shall vest in the Amended by the Second Amendment. Road Department or the authority designated by the Government of Nepal by notification published in the Nepal Gazette.
Public Roads Act, 1974

Road Department or the authority designated by the Government of Nepal by notification published in the Nepal Gazette. Added by the Second Amendment.(2) While taking proceedings under Sub-section (1), the Road Department or the designated authority may exercise the same powers as a District Court under the prevailing law.

(3) A person aggrieved by an order of punishment made by the Amended by the Second Amendment. Road Department or the designated authority under Sub-section (1) may, within thirty-five days, appeal to the Amended by the Some Nepal Acts Amendment Act, 2072. High Court. 32. Delegation of Powers: The Government of Nepal may delegate all or any of the powers conferred on the Road Department under this Act to any authority. 33. Power to Make Rules: (1) The Government of Nepal may make rules to carry out the objectives of this Act.

(2) Without prejudice to the generality of the power conferred by Sub-section (1), the rules may, in particular, make provision for the following matters:-

(a) Omitted by the First Amendment.
(b) Omitted by the First Amendment.
(c) The basis for determining compensation for damage to crops, trees, plants and other things,
(d) Omitted by the First Amendment.
(e) Conditions to be observed when constructing or placing anything opening or projecting towards the public road,
(f) Conditions to be observed when constructing any door or path on the left or right of the public road,
(g) Matters to be observed when constructing or erecting any type of house, wall, drain, path, pillar, pole, etc., within the road boundary or on the edge thereof,
(h) Specifying the height and manner of placing wires or other similar things over or on the edge of the public road or road boundary,
(i) Procedure to be followed when constructing any drain or laying pipes or wires across or from the public road or road boundary,
(j) Duties of a person doing any work on a public road in a manner that obstructs traffic and other conditions to be observed by him. 34. Repeal and its Effect: (1) The Highway (Construction Arrangement) Act, 2021 (1964) and the rules made under that Act are hereby repealed.

(2) If, at the time this Act comes into force, any compensation for land acquired under the Highway (Construction Arrangement) Act, 2021 (1964) remains to be paid, such compensation shall be paid according to that Act.
Liquor Act, 1974

Liquor Act, 2031

Royal Seal and Date of Publication
2031.06.20

Amending Acts

1. Judicial Administration Reform (Fourth Amendment) Act, 2043 2043.07.24
2. Judicial Administration Act, 2048 2048.02.16
3. Liquor (First Amendment) Act, 2057 2057.10.04

Certification and Date of Publication
4. Republic Strengthening and Some Nepal Laws This Act came into effect from Jestha 15, 2065. Amendment Act, 2066 2066.10.07
5. Some Nepal Acts Amendment Act, 2072 2072.11.13
6. Finance Act, 2075 2075.03.32
7. Finance Act, 2080 2080.03.31
8. Finance Act, 2081 2081.04.01
9. Finance Act, 2082 2082.03.30

Act No. 10 of the year 2031



An Act Made to Regulate Liquor

Preamble: Whereas it is desirable to regulate the production, sale, distribution, export and import of liquor in order to maintain the morality, health, convenience and economic interest of the general public,

This Act is hereby enacted by His Majesty King Birendra Bir Bikram Shah Dev, with the advice and consent of the National Panchayat. 1. Short Title, Extent and Commencement: (1) This Act may be called the "Liquor Act, 2031".

(2) This Act shall apply throughout Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066..

(3) This Act shall come into force immediately. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

Amended by the Finance Act, 2082.(a) "Liquor" means any substance containing more than zero point five percent alcohol prepared by fermenting or in any other manner through a biochemical process from grain, fruit or any other starchy substance, and the term also includes liquor, jaand, chhyang, whiskey, rum, gin, brandy, vodka, beer, wine, sherry, champagne, cider, perry, mead, malt liquor, sake, soju, vermouth, liquor-mixed prepared beverages, industrial alcohol, rectified spirit, malt spirit, silent spirit, denatured spirit, E.N.A. and heads spirit. Added by the Finance Act, 2075.(b) "Production" means the fermentation, heating, cooking of substances necessary for preparing liquor, or the mixing of anything to impart aroma or flavor to such substance, or any method or action adopted for preparing liquor.
Liquor Act, 1974

Added by the Finance Act, 2075.(b) "Production" means the fermentation, heating, cooking of substances necessary for preparing liquor, or the mixing of anything to impart aroma or flavor to such substance, or any method or action adopted for preparing liquor. Added by the Finance Act, 2075.(c) "License" means a license granted pursuant to Section 6A for the production, sale, distribution, export or import of liquor.

(c1) "Excise Officer" means an officer designated under the prevailing law relating to excise.

(c2) "Producer" means a person, firm, company or institution that has obtained a license to produce liquor.

(c3) "Person" means any individual, establishment, association, partnership firm, cooperative, joint venture, director of a trust or fund, proprietor, or agent acting as principal, and the term also includes an entity engaged in the production or import of liquor and its wholesale or retail or any form of sale or distribution, whether for profit or not, and any branch, sub-branch or other similar place of transaction of such entity.

(c4) "Import" means bringing liquor into Nepal from abroad in accordance with the prevailing law.

(c5) "Department" means the Inland Revenue Department.

(d) "Prescribed" or "as prescribed" means prescribed or as prescribed in the rules made under this Act. 3. Control on Production of Liquor: No person shall produce liquor without a license, and even a person who has obtained a license shall not produce liquor otherwise than in accordance with the conditions specified in the license. Added by the Finance Act, 2081.3A. Provisions relating to Local Liquor: Provisions relating to the production, branding and regulation of local liquor shall be as prescribed. 4. Control on Sale and Distribution of Liquor: No person shall sell, distribute liquor or open a bar, restaurant or shop serving liquor without a license, and even a person who has obtained a license shall not do so otherwise than in accordance with the conditions specified in the license. Added by the First Amendment.4A. Prohibition on Production and Sale/Distribution of Liquor: (1) No person shall produce or sell or distribute liquor by keeping it in plastic pouches.

(2) No person shall sell or distribute liquor to any person who has not completed the age of eighteen years.

(3) No person who has not completed the age of eighteen years shall sell or distribute liquor. 5. Control on Export and Import of Liquor: No person shall Amended by the Finance Act, 2081.export or import liquor without a license, and even a person who has obtained a license shall not do so otherwise than in accordance with the conditions specified in the license. Amended by the Finance Act, 2075.6.
Liquor Act, 1974

Amended by the Finance Act, 2075.6. License Required: No person shall produce, Amended by the Finance Act, 2080.import, export, sell or store liquor without obtaining a license under the Excise Act, 2058 or the Excise Rules, 2059. Added by the First Amendment.6A. License to be Granted: Upon receipt of an application for a license under Section 6, the prescribed officer shall make necessary inquiry into such application, and if upon such inquiry it appears proper to grant the license to the applicant, the officer shall, subject to the conditions prescribed, grant a license in the prescribed format for the production, sale, distribution, export or import of liquor upon collection of the prescribed fee. Provided that a license shall not be granted to any person who has not completed the age of eighteen years. 6B. Term and Renewal of License: Provisions relating to the term of a license and the renewal fee shall be as prescribed. 6C. Power to Cancel License: The prescribed officer may cancel a license granted pursuant to Section 6A in the following circumstances:-

(a) if the license is not renewed,

(b) if the conditions specified in the license are violated,

(c) if any act contrary to Section 4A is done. 7. Situations Where Not Applicable: Notwithstanding anything contained in other sections of this Act, no license under this Act shall be required for making liquor or jaand in the prescribed quantity for private use. Amended by the First Amendment.8.
Liquor Act, 1974

7. Situations Where Not Applicable: Notwithstanding anything contained in other sections of this Act, no license under this Act shall be required for making liquor or jaand in the prescribed quantity for private use. Amended by the First Amendment.8. Power to Search, Seize or Arrest: (1) If there is reasonable cause to believe that an offence punishable under this Act has been committed at any place, an Excise Officer may search such place.

(2) While conducting a search under Sub-section (1), the Excise Officer shall conduct the search only after informing the owner of the place being searched or the person currently using such place of the reason for the search before entering that place.

(3) If during a search under Sub-section (2), credible cause for an offence punishable under this Act is found, the goods related to such offence may be seized.

(4) If the Excise Officer has reason to believe that any person has committed or is about to commit an offence punishable under this Act and that such person is likely to abscond if not arrested, the Excise Officer may arrest such person.

(5) While conducting a search, seizure or arrest under this Section, the Excise Officer shall have the same powers as a police officer under the prevailing law.

(6) The Excise Officer shall conduct a search, seizure or arrest under this Section in the presence of a local representative.

(7) Other procedures to be followed by the Excise Officer while conducting a search, seizure or arrest under this Section shall be as prescribed. 9. Report of Arrest and Seizure to be Submitted: Upon arresting any person or searching any place or seizing any goods under this Act, the Excise Officer shall, within twenty-four hours, send a report thereof by the quickest means to the officer one level above him. 10. Amount Payable to Government of Nepal to be Realized as Government Due: If any person fails to pay or deposit any amount payable to the Government of Nepal under this Act or the rules made under this Act, the Excise Officer shall realize such amount from such person as a government due. Amended by the First Amendment.11.
Liquor Act, 1974

Amended by the First Amendment.11. Punishment for Search, Seizure or Arrest with Malicious Intent: If any person, without reasonable suspicion that an act against this Act has been committed, with the intent to cause trouble, harassment, disgrace or damage to another, enters or causes to enter any place, searches or causes to search, arrests or causes to arrest any person, seizes or causes to seize goods not liable to seizure or confiscation, or causes or causes to cause unnecessary damage or injury to any person, such person shall be liable to imprisonment for a term up to six months or a fine up to one hundred thousand rupees or both. Amended by the Finance Act, 2075.12. Punishment: (1) If any person commits the following offences, the value of the goods (bigo) shall be confiscated and such person shall be liable to a fine equivalent to the value of the goods (bigo) or imprisonment for a term up to one year or both:-

(a) if excise duty payable on liquor under the Excise Act, 2058 is suppressed, concealed or evaded,

(b) if liquor is produced or Amended by the Finance Act, 2080.exported or imported without a license,

(c) if any person commits any offence against this Act by preparing false accounts or forged documents.

(2) If any person attempts or abets the commission of an offence referred to in Clause (a), (b) or (c) of Sub-section (1), such person shall be liable to half the punishment mentioned in that Sub-section.

(3) Vessels, utensils, materials, or any equipment, machinery or vehicle used directly or indirectly in connection with the commission of the offence shall also be confiscated. Provided that if the person committing the offence used a vehicle without the consent of the vehicle owner, such vehicle shall not be confiscated, and the vehicle owner shall be fined twenty-five thousand rupees, and the driver shall, depending on the nature of the offence, be liable to imprisonment for a term up to three months or a fine up to fifteen thousand rupees or both.

(4) Notwithstanding anything contained in Sub-section (3), if such vehicle is registered as a rental vehicle and is found to have been used with the involvement of the vehicle owner, such vehicle shall be confiscated. Amended by the First Amendment.13.
Liquor Act, 1974

Amended by the First Amendment.13. Confiscation and Sale of Liquor and Other Goods: (1) If any person produces, sells, distributes, exports or imports liquor contrary to this Act, the Excise Officer shall confiscate the liquor related to such act.

(2) Of the liquor confiscated under Sub-section (1), the Excise Officer shall sell by auction the quality liquor as prescribed.

(3) The Excise Officer shall confiscate all goods used for dealing in liquor contrary to this Act and sell them by auction as prescribed. Provided that in the case of a vehicle, if the consent of the vehicle owner was not obtained, such vehicle shall not be confiscated. Added by the First Amendment.13A. Assistance to be Provided: It shall be the duty of the concerned person to provide necessary assistance when requested by an Excise Officer or an employee authorized by him in the course of investigation of an offence punishable under this Act. 14. Authority to Hear Cases: (1) The authority to initiate proceedings and adjudicate cases under Section 11 shall vest in the Government of Nepal or an officer designated by the Government of Nepal, and the authority to initiate proceedings and adjudicate other cases under this Act shall vest in the Excise Officer.

(2) The authority to initiate proceedings and adjudicate under Sub-section (1) shall have the same powers as a District Court under the prevailing Nepal law. Amended by the Finance Act, 2075.15. Appeal: (1) An appeal against a decision made by an Excise Officer under this Act shall lie to the Revenue Tribunal, and an appeal against a decision made by an officer designated by the Government of Nepal shall lie to the concerned High Court.

(2) A person filing an appeal under Sub-section (1) shall, within fifteen days of filing the appeal, register a copy of the appeal at the concerned office. Added by the First Amendment.15A.
Liquor Act, 1974

Added by the First Amendment.15A. Reward: (1) If any person gives information or presents evidence including persons or goods regarding any intended or actual production, storage, sale, distribution, transportation, export or import of liquor contrary to this Act, and if such act is proven, such person shall be given a reward as follows:-

(a) for the informant: ten percent of the value of the goods (bigo),

(b) for the person presenting liquor or persons: twenty percent of the value of the goods (bigo),

(c) for the person presenting both liquor and persons: thirty percent of the value of the goods (bigo).

(2) For the purpose of providing a reward under Sub-section (1), if the confiscated liquor and related goods are auctioned, the amount received from the auction shall be deemed to be the value of the goods (bigo).

(3) If for any reason the confiscated liquor or goods cannot be auctioned or are not to be auctioned, the Government of Nepal may, as a reward, give an amount it deems appropriate to the person giving such information or presenting evidence including persons.

(4) If there is more than one person entitled to a reward under this Section, the reward amount shall be distributed equally. 16. Power to Make Rules: The Government of Nepal may make rules for the purpose of implementing the objectives of this Act. Amended by the Finance Act, 2075.17. To be According to Prevailing Law: Notwithstanding anything contained in this Act, provisions relating to licenses, raw materials for liquor, production, extraction, recovery rate, establishment and fees concerning liquor administration shall be according to other prevailing Nepal laws. 18. This Act to Prevail: Matters provided for in this Act shall be according to this Act, and except as provided in Section 17, the prevailing Nepal laws inconsistent with this Act shall, to the extent of such inconsistency, be deemed to have been repealed for the purposes of this Act.
Negotiable Instruments Act, 1977

Negotiable Instruments Act, 2034 (1977)

Royal Seal and Publication Date

2034.09.18

Amending Acts

1. Some Nepal Acts Amendment Act relating to Finance, 2039 (1982)
 2039.07.03
 Certification and Publication Date

2. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 (2009)♦
 2066.10.07

3. Some Nepal Acts Amendment Act to Make Compatible with the Constitution of Nepal, 2075 (2018)
 2075.11.19

4. Banking Offence and Punishment (Second Amendment) Act, 2082 (2025)
 2082.01.24

Act Number 26 of the year 2034 (1977)

∝

An Act made to provide for Negotiable Instruments

Preamble: Whereas, it is expedient to define negotiable instruments and to make other provisions relating thereto for the systematization of banking transactions,

Now, therefore, His Majesty King Birendra Bir Bikram Shah Dev, by and with the advice and consent of the Rashtriya Panchayat, has enacted this Act. Chapter-1

Preliminary

1. Short Title, Extent and Commencement: (1) This Act may be called the "Negotiable Instruments Act, 2034 (1977)".
 (2) It extends to the whole of Nepal ∝
 (3) It shall come into force on such date as the Government of Nepal may, by notification in the Nepal Gazette, appoint. ˟

2. Definitions: In this Act, unless the subject or context otherwise requires,-
 (a) "Bank" means a bank established pursuant to the prevailing law.
 (b) "Banker" means an institution carrying on banking business, and includes a post office doing the work of a savings bank.
 (c) "Security" means property mortgaged or to be mortgaged as collateral while taking or giving credit pursuant to the prevailing law, or a document relating thereto.
 (d) "Negotiation" means the transfer of a negotiable instrument to any person entitled thereto in such a manner as to constitute him 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 only to, or to the order of, a certain person, or to the bearer of the instrument.
Negotiable Instruments Act, 1977

Provided that this term shall not include an instrument made pursuant to Chapter-15 of Part 4 of the Muluki Civil (Code) Act, 2074 (2017).
 (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 only to, or to the order of, a certain person, or to the bearer of the instrument, on a certain date, or after a certain period, or on demand.
 (h) "Cheque" means a bill of exchange drawn on a banker payable on demand.
 (i) "Draft" means a bill of exchange drawn by one office of a bank upon another office of the same bank, payable on demand to a certain person or his order.
 (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 a person entitled in his own name to the possession of a negotiable instrument and to receive the amount due thereunder.
 (l) "Drawer" means the person who writes or draws a bill of exchange.
 (m) "Drawee" means the person directed to pay a bill of exchange.
 (n) "Alternative Drawee" means a person mentioned or endorsed in the bill of exchange as one to whom recourse may be had if the drawee does not accept or pay the bill.
 (o) "Holder in Due Course" means for a negotiable instrument payable to bearer, any person who has become entitled to the instrument according to law; for a negotiable instrument payable to order, the payee or any person whom he has endorsed.
Negotiable Instruments Act, 1977

Provided that he must have acquired the right or become the endorsee before the maturity of the instrument, without having sufficient cause to believe that the right of the person from whom he acquired it was defective.
 (p) "Payment in Due Course" means payment of the amount due under a negotiable instrument to the person in possession thereof, in good faith and without negligence.
 (q) "Endorsement" means signing on the face or back of a negotiable instrument, or on a separate document attached to it, for the purpose of negotiating it.
 (r) "Endorsement in Blank" means an endorsement where the endorser merely signs his name.
 (s) "Special Endorsement" means an endorsement specifying the person to whom or to whose order payment is to be made.
 (t) "Bill of Exchange payable on Demand" means a bill of exchange payable on demand, on sight, or on presentation.
 (u) "Maturity Date" means the date mentioned in the negotiable instrument as the date on which payment is due.
 (v) "Public Holiday" means a day declared by the Government of Nepal as a public holiday, and includes any day on which banking business is not transacted.
 (w) "Notary Public" means a person appointed or designated pursuant to section 106.
 (x) "Prescribed" or "as prescribed" means prescribed under this Act or rules made under this Act. Chapter-2

Negotiable Instruments, Parties Thereto, and Their Rights and Liabilities

3. Ambiguous Instruments: Where a document is in such a form that it is difficult to ascertain whether it is a promissory note or a bill of exchange, the holder may treat it as either a promissory note or a bill of exchange at his option. 4. Right of Holder: A holder may transfer a negotiable instrument. 5. Instrument without Maturity Date: A negotiable instrument in which no maturity date is expressed shall be payable on demand. 6. Discrepancy between Figures and Words: Where there is a discrepancy between the sum expressed in figures and the sum expressed in words on a negotiable instrument, the sum expressed in words shall be recognized. 7. Days of Grace: Payment of a negotiable instrument which is not expressed to be payable on demand, on sight, or on presentation, shall be due on the fourth day after the maturity date. 8. Payment after Certain Period: Payment of a negotiable instrument payable on a fixed day, or after a stated period from presentation, or after the occurrence of a specified event, or after a stated period from the occurrence of such event, shall be made as specified in the instrument. 9.
Negotiable Instruments Act, 1977

8. Payment after Certain Period: Payment of a negotiable instrument payable on a fixed day, or after a stated period from presentation, or after the occurrence of a specified event, or after a stated period from the occurrence of such event, shall be made as specified in the instrument. 9. Calculation of Maturity Date: In calculating the maturity date of a negotiable instrument payable after a period, the day of the date of the instrument or the day of presentment for acceptance shall be excluded. 10. When Maturity Date falls on a Public Holiday: When the maturity date of a negotiable instrument falls on a public holiday, the instrument shall be deemed to be due on the next succeeding day. 11. Capacity of Party: Every person capable of contracting under the prevailing law may draw, make, accept, endorse, negotiate, and do all other acts with respect to a negotiable instrument, and all parties shall be liable therefor. Provided that if such act is done by a minor, all parties except the minor shall be liable. 12. Agent: The principal who authorizes an agent to do an act shall be liable for the act done by the agent. 13. Liability of Agent: An agent who signs a negotiable instrument without indicating that he signs as an agent, or without specifying that he is not personally liable, shall be personally liable on the instrument. 14. Liability of Legal Representative: A person who signs a negotiable instrument as the legal representative of a deceased person shall be fully personally liable on the instrument unless he specifies that he is liable only to the extent of the property he has received. 15. Liability of Drawer: Where a bill of exchange is dishonoured by non-acceptance or non-payment by the acceptor or drawee, the drawer shall, upon due notice thereof being given to him, be liable to compensate the holder. 16. Liability of Bank Paying Cheque: A bank shall pay a cheque presented to it if it is in due course and the drawer has sufficient deposits. If the bank fails to pay such a cheque, resulting in any loss or damage to the drawer or the holder in due course, the bank shall also pay compensation therefor according to 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 is duly presented for payment after the maturity date.
Negotiable Instruments Act, 1977

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 is duly presented for payment after the maturity date. If payment of such a negotiable instrument is not made, resulting in any loss or damage to the party entitled to payment, the maker or acceptor shall also pay compensation therefor according to this Act. 18. Person Capable of Accepting Bill of Exchange: (1) Only the drawee or an alternative drawee can accept a bill of exchange, making himself liable. (2) Where a bill of exchange has more than one drawee, any one of them may accept it for himself only. Provided that if such drawees are partners or have given authority, one may accept the bill for the other. 19. Liability of Endorser: Every endorser who endorses and transfers a negotiable instrument, without specifying that his liability is limited or non-existent, shall be liable to every subsequent holder, unless otherwise agreed. 20. Liability of Prior Parties to Holder in Due Course: Until the instrument is paid in due course, every prior party is liable to the holder in due course. 21. Principal Debtor Status: Unless otherwise agreed, before acceptance of a negotiable instrument, the liability of the maker or drawer shall be that of a principal debtor, and after acceptance, the liability of the acceptor shall be that of a principal debtor, and the liability of other parties shall be that of guarantors. 22. Prior Party as Principal Debtor for Subsequent Party: Unless otherwise agreed, amongst parties liable as guarantors, each prior party shall be liable as a principal debtor for each subsequent party. 23. Liability of Guarantor: Notwithstanding anything contained in the prevailing law, a person who becomes a guarantor on an instrument shall not be entitled to claim that recovery can be made from his property only after failure of recovery from the principal debtor's property; recovery may be made directly from the guarantor. 24. Release of Endorser from Liability: The holder shall not, without the consent of the endorser, impair the endorser's right of recourse against prior parties. If the right is so impaired, the endorser shall be released from liability to the holder. 25. Liability for Forgery: A person who accepts a bill of exchange knowing it to be forged, or under circumstances where he could have known it to be forged, shall not be entitled to be released from his liability on the ground that the bill is forged. 26.
Negotiable Instruments Act, 1977

25. Liability for Forgery: A person who accepts a bill of exchange knowing it to be forged, or under circumstances where he could have known it to be forged, shall not be entitled to be released from his liability on the ground that the bill is forged. 26. Instrument without Consideration: A negotiable instrument made, accepted, endorsed, or transferred in contravention of the prevailing law shall not create an obligation to pay between the parties doing such act. If such an instrument is transferred, with or without endorsement, to a holder, the holder so acquiring it may recover the amount of such instrument from the transferor or any other prior party. 27. Duty to Give Another Copy: Upon request by a holder who has lost a negotiable instrument, the drawer or the maker of a promissory note shall give another copy upon receiving necessary security and expenses incurred in preparing the copy. Chapter-3
Negotiation and Endorsement

28. Transfer: The act of making, accepting, or endorsing a negotiable instrument is deemed complete only after its transfer. 29. Negotiation by Transfer: A negotiable instrument payable to bearer may be negotiated by transfer. A negotiable instrument payable to a specified person or his order must be endorsed by the holder. 30. Effect of Endorsement: After a negotiable instrument is endorsed and transferred, the right is transferred. The holder may further endorse it to another person or may receive payment himself. 31. Conversion of Endorsement: The holder of a negotiable instrument bearing a blank endorsement may convert the blank endorsement into a special endorsement. 32. Restriction on Endorsement: The right of the holder to endorse may be restricted by endorsing the instrument so that it cannot be re-endorsed, or may be endorsed only as specified. Provided that such restriction shall not apply to a negotiable instrument payable to bearer. 33. Holder acquiring Right from Holder in Due Course: The right of a holder who acquires a right in a negotiable instrument from a holder in due course shall be the same as that of 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 made pursuant to section 32. 35. Endorsement without Liability: An endorser may endorse a negotiable instrument by clearly stating that he incurs no liability. 36. Endorsement for Part Amount: A negotiable instrument endorsed for payment of only a part of the amount shall not be negotiable. 37. Negotiation by Legal Representative: If a person who has endorsed a negotiable instrument payable to order dies before transferring the instrument, his legal representative cannot negotiate it by mere transfer without endorsement. 38.
Negotiable Instruments Act, 1977

37. Negotiation by Legal Representative: If a person who has endorsed a negotiable instrument payable to order dies before transferring the instrument, his legal representative cannot negotiate it by mere transfer without endorsement. 38. Instrument obtained Unlawfully: A person who obtains a negotiable instrument by committing an offence, fraud, or unlawfully, or a person who finds a lost negotiable instrument, shall not be entitled to claim the amount mentioned in such instrument against the maker, acceptor, or holder. 39. Instrument Overdue or Dishonoured: The right of a holder who takes a negotiable instrument which has been dishonoured by non-acceptance or refusal to pay, knowingly, or takes an overdue negotiable instrument, shall not be greater than the right of the person who transferred it. Chapter-4
Presentment

40. Presentment for Acceptance: A bill of exchange payable after presentment must be presented to the drawee for acceptance during business hours on a business day. If the day and place for presentment are not specified, the person entitled to demand acceptance must, within a reasonable time, make diligent search for the drawee and present it to him during business hours on a business day. If not so presented, no other party shall be liable to the person so failing to present. Provided that if the drawee cannot be found after diligent search, the bill shall be deemed to be dishonoured. 41. Drawee's Time for Deliberation: If a drawee requests time to consider whether to accept a bill of exchange presented for acceptance, the holder must give him a grace period of two days, excluding public holidays. 42. Presentment of Promissory Note: A promissory note payable after a stated period from sight must be presented for sight by the person entitled to payment to the maker, within a reasonable time, during business hours on a business day. If not so presented, no other party shall be liable to the person so failing to present. 43. Presentment for Payment: A promissory note, bill of exchange, and cheque must be presented for payment during business hours to the maker, acceptor, and drawee respectively, by the holder or his order. If not so presented, the other parties mentioned in the instrument shall not be liable to such holder. 44. Instrument Payable at Specified Place: A negotiable instrument expressed to be payable at a specified place must be presented for payment at that place. 45. Instrument without Payment Place Specified: A promissory note which does not specify a place for presentment for payment 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.
Negotiable Instruments Act, 1977

45. Instrument without Payment Place Specified: A promissory note which does not specify a place for presentment for payment 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. When Place of Residence or Business is Uncertain: If the place of residence or business of the maker, acceptor, or drawee of a negotiable instrument which does not specify a place for presentment for payment is uncertain, the instrument must be presented for payment or acceptance at the place where he is found. 47. Necessity of Presenting Cheque to Claim against Drawer: (1) No person shall be entitled to claim against the drawer of a cheque without presenting it to the bank on which it is drawn. (2) If any loss is caused to anyone due to failure to present the cheque within a reasonable time, the amount of such loss shall not be claimable from the drawer. 48. Delay in Presentment Excused: Delay in presentment for acceptance or payment shall not be deemed delay caused by circumstances beyond the holder's control, unless the delay arises from his own bad faith, negligence, or fault. Provided that after the circumstance ceases, the negotiable instrument must be presented for acceptance or payment within a reasonable time. 49. Presentment within Reasonable Time: The holder of a negotiable instrument 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, and cheque may be presented for acceptance or payment to the agent of the maker, acceptor, and drawee respectively. Provided that if such maker, acceptor, or drawee has died, the instrument must be presented to his legal representative. 51. Cases Where Presentment for Payment is Unnecessary: In the following cases, a negotiable instrument shall be deemed to be dishonoured, and presentment for payment thereof shall be unnecessary:-
 (a) If the maker, acceptor, or drawee intentionally obstructs the presentment of the negotiable instrument; or
 (b) If, where presentment at a specified place for payment is required, the person liable to pay or his agent is not present at the specified place during business hours on a business day; or
 (c) If the person liable to pay keeps his office closed during business hours on a business day; or
 (d) Where no specified place is required for presentment, the relevant party cannot be found despite diligent effort to present the negotiable instrument. 52.
Negotiable Instruments Act, 1977

52. Compensation for Negligence or Fault: If a bill of exchange accepted as payable at a particular bank is duly presented for payment and is dishonoured due to the banker's negligence or fault, causing loss or damage to the holder, such banker must pay compensation to the holder according to 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 obliged to pay a cheque or draft drawn on 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, where a rate of interest is specified in a negotiable instrument, it shall be calculated accordingly. Provided that when computing interest for compensation or damages, it shall be calculated at the maximum interest rate charged by commercial banks on loans. 55. Delivery of Instrument on Payment: The person paying may inspect the negotiable instrument before payment and, after payment, may demand delivery of the instrument. 56. Circumstances for Discharge from Liability: The maker, acceptor, or endorser of a negotiable instrument shall be discharged from liability in the following circumstances:-
 (a) If any holder cancels their name with the intention of discharging them from liability, such parties whose name is cancelled are discharged from liability to the holder or any person acquiring title from him or the drawer;
 (b) If any holder gives notice discharging the acceptor, endorser, or drawer from liability, all acceptors and endorsers are discharged from liability to the holder giving such notice or parties deriving title from him;
 (c) If the maker, acceptor, or endorser of a negotiable instrument payable to bearer or endorsed in blank makes payment in due course of the amount due, he is discharged from liability to all parties related to such negotiable instrument. 57. Discharge by Giving Additional Time to Acceptor: If any holder gives the acceptor of a bill of exchange more than two days (excluding public holidays) to accept, prior parties who do not consent to this are discharged from liability to such holder. 58. Discharge of Drawee of Cheque: In the case of a cheque payable to "bearer", the drawee is discharged from his liability after making payment in due course to the bearer, whatever the endorsement on the back of the cheque may be. In the case of a cheque payable to "order", the drawee is discharged after making payment in due course to the payee or the person endorsed by him. 59.
Negotiable Instruments Act, 1977

In the case of a cheque payable to "order", the drawee is discharged after making payment in due course to the payee or the person endorsed by him. 59. Discharge from Liability for Paying Draft: A bank paying a draft drawn by one office of the same bank on another office payable on demand to order, after making payment in due course to the payee or the person endorsed by him, is discharged from liability. 60. Qualified Acceptance: If the holder of a bill of exchange accepts a qualified acceptance, all prior parties except the party consenting to such qualification are discharged from liability. 61. Alteration or Cancellation of Instrument: Unless an alteration or cancellation is made on a negotiable instrument with the mutual consent of the principal parties, all prior parties, except the party making or consenting to the alteration or cancellation of a material part of the instrument, are discharged from liability. Explanation: "Alteration or cancellation of a material part" means an act which alters the meaning of the negotiable instrument, changes its form, or affects the liability of the relevant parties. 62. Payment of Altered Instrument not Apparent: A person or bank making payment in due course of a negotiable instrument which has been materially altered, but where the alteration is not apparent upon reasonable inspection, or of a crossed cheque where the crossing is not apparent upon reasonable inspection, shall be discharged from liability. 63. Discharge of all Parties: When a bill of exchange is paid or satisfied, and after the period for payment or satisfaction is completed, and it comes into the hands of the acceptor upon payment or satisfaction in due course, all other parties related to that bill are discharged from liability. Chapter-6
Notice of Dishonour

64. Dishonour by Non-Acceptance: (1) A bill of exchange presented for acceptance is deemed to be dishonoured by non-acceptance if the drawee required to accept does not accept, or if, where there are several drawees not being partners, any one of them does not accept. (2) A bill of exchange is deemed to be dishonoured if the drawee agrees to accept only on a condition or is incompetent to contract. 65. Dishonour by Non-Payment: A promissory note, bill of exchange, or cheque is deemed to be dishonoured by non-payment if the maker, acceptor, or drawee fails to pay the amount due. 66. Notice of Dishonour: When a negotiable instrument is dishonoured by non-acceptance or non-payment, notice thereof must be given by the holder or any party liable thereon to all parties related to the instrument; and if any party is not notified of such fact, such party shall not be liable on the instrument.
Negotiable Instruments Act, 1977

Provided that nothing in this section shall require notice of dishonour to be given to the maker of a promissory note, the acceptor of a bill of exchange, or the drawee. 67. Mode of Giving Notice of Dishonour: Notice of dishonour may be given orally or in writing to the person to whom it is to be given, or to his authorized agent, or to his legal representative if he is dead. When given in writing, it may be sent by registered post in any form. Such notice must clearly specify, in addition to the fact that the instrument has been dishonoured, in what capacity the notified person is liable, and must be given within a reasonable time at his place of business or residence. A notice duly sent by post shall not be deemed not to have been given if, for some reason, it does not reach the relevant person. 68. Time for Agent to Give Notice of Dishonour: If a negotiable instrument is presented through an agent for presentment, such agent shall have the same time to give notice of dishonour to the relevant principal as the holder would have. 69. Death of Person Notified: If the person notified of the dishonour of a negotiable instrument is dead, and the person giving notice is unaware of this fact, the notice given by him shall not be invalid. 70. When Notice of Dishonour is Unnecessary: Notice of dishonour shall be unnecessary in any of the following circumstances:-
 (a) If the party entitled to notice has, by his conduct, waived notice;
 (b) If the drawer has countermanded payment;
 (c) If the party would suffer no loss from the failure to give notice;
 (d) If the acceptor is the drawer himself;
 (e) If the promissory note is not transferable;
 (f) If the party entitled to notice cannot be found despite diligent search, or if the person required to give notice is unable to give it for any reason other than his own fault;
 (g) If the party entitled to notice, knowing of the dishonour, unconditionally promises to pay the amount of the negotiable instrument. 71. Noting by Notary Public: If a negotiable instrument is dishonoured by non-payment or non-acceptance, the holder may, within a reasonable time, apply to a Notary Public to cause the fact of dishonour to be noted on the instrument or on a paper attached thereto. When causing it to be noted, the date and reason for the dishonour must be mentioned, and if the negotiable instrument is not clearly dishonoured, but the holder considers it dishonoured, the reason must also be clearly stated. 72.