Chapter II - Of Notes, Bills and Cheques
Section 22
Section 22: Maturity and days of grace
Section 22 defines maturity and adds three days of grace for the promissory notes and bills falling within its stated rule.
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Need advice on Section 22?
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
The maturity of a promissory note or bill of exchange is the date at which it falls due.
Days of grace.—Every promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.
Key rule and applicability
For a qualifying time note or bill, maturity is the third day after its expressed payment day. The section expressly excludes instruments expressed to be payable on demand, at sight or on presentment from that grace rule.
Limits and related provisions
Do not add grace to every payment instrument. Cheques are not included in this provision’s description, and demand, sight and presentment instruments are excluded. After calculating maturity, check section 25 if it is a public holiday.
Hypothetical business example
Hypothetical: a qualifying time bill is expressed payable on 10 June. Before applying any public-holiday adjustment, the third day after that date is 13 June. A demand instrument does not receive that same three-day addition under section 22.
Practical decision flow
Identify the instrument type and its payment wording.
For a qualifying time note or bill, calculate the third day after the expressed payment day.
Apply the relevant calculation provisions and then check the public-holiday rule.
Practical checklist
Do
- Identify the instrument type and its payment wording.
- For a qualifying time note or bill, calculate the third day after the expressed payment day.
- Apply the relevant calculation provisions and then check the public-holiday rule.
Avoid
- Do not add grace to every payment instrument. Cheques are not included in this provision’s description, and demand, sight and presentment instruments are excluded. After calculating maturity, check section 25 if it is a public holiday.
Glossary
- Maturity
- The date when the note or bill falls due.
- Days of grace
- The three-day addition for instruments within section 22.
Frequently asked questions
Does the rule add grace to demand instruments?
No. Instruments expressed payable on demand, at sight or on presentment are excluded.
Does this give cheques three extra days?
No. The provision refers to the specified promissory notes and bills, not a general cheque grace period.
What if the resulting maturity day is a public holiday?
Section 25 supplies the separate public-holiday adjustment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026