Chapter XVI - Of International Law
Section 135
Section 135: Place-of-payment law for dishonour and notice
Section 135 uses the law of the payment place to determine dishonour and sufficient notice where the instrument is payable somewhere different from its making or indorsement place.
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Need advice on Section 135?
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
Where a promissory note, bill of exchange or cheque is made payable in a different place from that in which it is made or indorsed, the law of the place where it is made payable determines what constitutes dishonour and what notice of dishonour is sufficient.
Illustration: A bill of exchange drawn and indorsed in India, but accepted payable in France, is dishonoured. The indorsee causes it to be protested for such dishonour, and gives notice thereof in accordance with the law of France, though not in accordance with the rules herein contained in respect of bills which are not foreign. The notice is sufficient.
Key rule and applicability
For a note, bill or cheque made payable at a place different from where it was made or indorsed, the law of the place of payment determines what counts as dishonour and what notice of dishonour is sufficient. The statutory example illustrates that complying with the relevant payment-place law can be sufficient even where domestic non-foreign-bill notice rules differ.
Limits and related provisions
The provision addresses dishonour and notice, not every contractual, enforcement or liability issue. The actual payment-place law and its current requirements must be established. The illustration involving France demonstrates the connecting rule; it does not itself supply a complete or current French protest and notice procedure.
Hypothetical business example
Hypothetical: An Indian business holds a bill made and indorsed in India but payable abroad. Before arranging dishonour notice, it checks the current law of the specified payment place and preserves evidence of compliance instead of assuming that its usual Indian notice process is sufficient.
Practical decision flow
Read the specified payment place and compare it with the places of making and indorsement.
Verify the relevant payment-place rules for dishonour and sufficient notice, including any applicable timing.
Keep the notice, delivery and protest records required by that law, while separately assessing other liability issues.
Practical checklist
Do
- Read the specified payment place and compare it with the places of making and indorsement.
- Verify the relevant payment-place rules for dishonour and sufficient notice, including any applicable timing.
- Keep the notice, delivery and protest records required by that law, while separately assessing other liability issues.
Avoid
- The provision addresses dishonour and notice, not every contractual, enforcement or liability issue. The actual payment-place law and its current requirements must be established. The illustration involving France demonstrates the connecting rule; it does not itself supply a complete or current French protest and notice procedure.
Glossary
- Law of the payment place
- The law selected by this section for dishonour and notice in its stated circumstances.
- Sufficient notice
- Notice satisfying the requirements of the law that the section makes applicable.
Frequently asked questions
Does an Indian indorsement always make Indian notice rules decisive?
No. Where Section 135 applies, the law of the place where the instrument is made payable determines sufficient notice.
Does the France illustration state today's complete procedure?
No. It illustrates the governing-law rule; current foreign requirements still need verification.
Does this decide all liability questions?
No. The section is directed to dishonour and notice, with other questions addressed separately.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026