Chapter XI - Of Acceptance and Payment for Honour and Reference in Case of Need
Section 116
Section 116: Acceptance and payment without previous protest
Section 116 allows the drawee in case of need to accept and pay a bill without a previous protest.
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Need advice on Section 116?
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
A drawee in case of need may accept and pay the bill of exchange without previous protest.
Key rule and applicability
The permission applies to the drawee in case of need. It removes previous protest as a prerequisite for that drawee’s acceptance and payment under this provision.
Limits and related provisions
Do not confuse the drawee in case of need with an acceptor or payer for honour. Those special honour routes have their own noting, protest, consent or declaration conditions.
Hypothetical business example
Hypothetical: a properly named drawee in case of need agrees to accept and pay the bill. Section 116 permits that action without first obtaining a protest merely as a condition of this route.
Practical decision flow
Verify the person’s designation as drawee in case of need.
Record that person’s acceptance and payment of the bill.
Keep this route distinct from the formal acceptance-for-honour or payment-for-honour process.
Practical checklist
Do
- Verify the person’s designation as drawee in case of need.
- Record that person’s acceptance and payment of the bill.
- Keep this route distinct from the formal acceptance-for-honour or payment-for-honour process.
Avoid
- Do not confuse the drawee in case of need with an acceptor or payer for honour. Those special honour routes have their own noting, protest, consent or declaration conditions.
Glossary
- Previous protest
- A protest made before the acceptance or payment.
- Drawee in case of need
- The specifically named additional drawee to whom this permission applies.
Frequently asked questions
Must this drawee wait for a previous protest before paying?
No. Section 116 expressly permits acceptance and payment without it.
Does the permission extend to every third-party payer?
The section names the drawee in case of need; other routes must satisfy their own provisions.
Is payment for honour the same process?
No. Section 113 describes a separate process with a prior recorded notarial declaration.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026