Chapter IX - Of Noting and Protest
Section 103
Section 103: Protest for non-payment after non-acceptance
Section 103 allows a particular bill already dishonoured by non-acceptance to be protested for non-payment at its specified payment place without another presentment to the drawee.
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Need advice on Section 103?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
All bills of exchange drawn payable at some other place than the place mentioned as the residence of the drawee, and which are dishonoured by non-acceptance, may, without further presentment to the drawee, be protested for non-payment, in the place specified for payment, unless paid before or at maturity.
Key rule and applicability
The bill must be drawn payable somewhere other than the place stated as the drawee's residence, and it must have been dishonoured by non-acceptance. If it has not been paid before or at maturity, the section permits protest for non-payment at the specified payment place without further presentment to the drawee.
Limits and related provisions
Both the different-place condition and prior non-acceptance dishonour matter. The rule does not exempt every dishonoured bill from further procedural requirements and does not authorize a non-payment protest after timely payment. The instrument's payment address, maturity and prior dishonour evidence should be read together.
Hypothetical business example
Hypothetical: A bill names the drawee's residence in one city but specifies payment in another. It is dishonoured by non-acceptance and remains unpaid at maturity. The holder checks the Section 103 route for a non-payment protest at the named payment place without another drawee presentment.
Practical decision flow
Compare the bill's stated drawee residence and specified payment place.
Confirm and document prior dishonour by non-acceptance and whether payment occurred before or at maturity.
Arrange any qualifying protest at the specified payment place and check its contents and applicable timing.
Practical checklist
Do
- Compare the bill's stated drawee residence and specified payment place.
- Confirm and document prior dishonour by non-acceptance and whether payment occurred before or at maturity.
- Arrange any qualifying protest at the specified payment place and check its contents and applicable timing.
Avoid
- Both the different-place condition and prior non-acceptance dishonour matter. The rule does not exempt every dishonoured bill from further procedural requirements and does not authorize a non-payment protest after timely payment. The instrument's payment address, maturity and prior dishonour evidence should be read together.
Glossary
- Non-acceptance
- The form of dishonour arising at the bill's acceptance stage.
- Specified payment place
- The place at which the bill directs payment, relevant to this exception.
Frequently asked questions
Does the rule apply to a bill payable at the stated drawee residence?
Section 103 specifically concerns a bill payable at some other place.
Is prior non-acceptance dishonour necessary?
Yes. It is an express condition of this route.
What if the bill is paid at maturity?
The section excludes the non-payment protest route where the bill is paid before or at maturity.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026