Chapter XI - Of Acceptance and Payment for Honour and Reference in Case of Need
Section 112
Section 112: Conditions for charging an acceptor for honour
Section 112 makes drawee presentment, dishonour and the specified record of dishonour prerequisites for charging an acceptor for honour.
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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
An acceptor for honour cannot be charged unless the bill has at its maturity been presented to the drawee for payment, and has been dishonoured by him, and noted or protested for such dishonour.
Key rule and applicability
At maturity, the bill must have been presented to the drawee for payment and dishonoured by that drawee. That dishonour must then have been noted or protested.
Limits and related provisions
Acceptance for honour does not let the holder bypass these steps and demand payment immediately without the stated conditions. Section 111’s separate presentment timing condition must also be considered.
Hypothetical business example
Hypothetical: a holder has an acceptance for honour but no record of payment presentment to the drawee at maturity. Before attempting recourse, the holder checks the section 112 prerequisites rather than relying solely on the acceptance signature.
Practical decision flow
Document maturity and presentment to the drawee for payment.
Preserve evidence of the drawee’s dishonour.
Obtain and retain the noting or protest and review the separate section 111 requirements.
Practical checklist
Do
- Document maturity and presentment to the drawee for payment.
- Preserve evidence of the drawee’s dishonour.
- Obtain and retain the noting or protest and review the separate section 111 requirements.
Avoid
- Acceptance for honour does not let the holder bypass these steps and demand payment immediately without the stated conditions. Section 111’s separate presentment timing condition must also be considered.
Glossary
- Charged
- Held liable through recourse under the stated honour provisions.
- Noting or protest
- The Act’s prescribed recording or certification of dishonour.
Frequently asked questions
Is drawee dishonour part of the condition?
Yes. Presentment at maturity and dishonour by the drawee are expressly stated.
Is noting or protest also necessary under this section?
Yes. The bill must be noted or protested for that dishonour.
Does acceptance for honour alone establish all charging conditions?
No. The section adds these requirements and must be read with section 111.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026