Chapter XI - Of Acceptance and Payment for Honour and Reference in Case of Need
Section 113
Section 113: Payment for honour
Section 113 governs payment for honour after a bill has been noted or protested for non-payment, including a prior notarial declaration.
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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
When a bill of exchange has been noted or protested for non-payment, any person may pay the same for the honour of any party liable to pay the same: provided that the person so paying or his agent in that behalf has previously declared before a notary public the party for whose honour he pays, and that such declaration has been recorded by such notary public.
Key rule and applicability
Any person may make the payment for a party liable to pay the bill. Before paying, that person or their agent must declare before a notary whose honour the payment supports, and the notary must record the declaration.
Limits and related provisions
Do not treat an informal third-party payment as automatically satisfying the payment-for-honour process. The prior declaration, identified liable party and notarial record are express requirements.
Hypothetical business example
Hypothetical: a guarantor wishes to pay for an indorser’s honour after non-payment has been protested. Before paying, the guarantor’s authorised agent declares the identified party before a notary, and the declaration is recorded.
Practical decision flow
Confirm the noting or protest for non-payment.
Identify the liable party for whose honour payment is intended.
Complete and retain the prior notarial declaration record before making the payment.
Practical checklist
Do
- Confirm the noting or protest for non-payment.
- Identify the liable party for whose honour payment is intended.
- Complete and retain the prior notarial declaration record before making the payment.
Avoid
- Do not treat an informal third-party payment as automatically satisfying the payment-for-honour process. The prior declaration, identified liable party and notarial record are express requirements.
Glossary
- Payment for honour
- Payment through the special process described in section 113.
- Prior declaration
- The declaration before a notary made and recorded before payment.
Frequently asked questions
Can an agent make the declaration?
Yes. The text allows the paying person or their agent in that behalf.
Can the declaration simply be made after payment?
The proviso requires it to have been made previously and recorded by the notary.
What prior dishonour record is required?
The bill must have been noted or protested for non-payment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026