Chapter II - Of Notes, Bills and Cheques
Section 23
Section 23: Calculating maturity by months
Section 23 calculates a stated period in months for a note or bill using the corresponding calendar day, with a last-day fallback when the ending month lacks that date.
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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
In calculating the date at which a promissory note or bill of exchange, made payable a stated number of months after date or after sight, or after a certain event, is at maturity, the period stated shall be held to terminate on the day of the month which corresponds with the day on which the instrument is dated, or presented for acceptance or sight, or noted for non-acceptance, or protested for non-acceptance, or the event happens, or, where the instrument is a bill of exchange made payable a stated number of months after sight and has been accepted for honour, with the day on which it was so accepted. If the month in which the period would terminate has no corresponding day, the period shall be held to terminate on the last day of such month.
Illustrations: (a) A negotiable instrument, dated 29th January, 1878, is made payable at one month after date. The instrument is at maturity on the third day after the 28th February, 1878.
(b) A negotiable instrument, dated 30th August, 1878, is made payable three months after date. The instrument is at maturity on the 3rd December, 1878.
(c) A promissory note or bill of exchange, dated 31st August, 1878, is made payable three months after date. The instrument is at maturity on the 3rd December, 1878.
Key rule and applicability
Identify the applicable date, sight, event or acceptance-for-honour trigger. The period ends on the corresponding day of the relevant month; where there is no corresponding day, it ends on that month’s last day. The statutory illustrations then reflect the applicable grace period.
Limits and related provisions
Do not substitute a fixed number of days for every month. Distinguish the end of the stated monthly period from final maturity after applying the relevant grace and holiday provisions.
Hypothetical business example
Hypothetical: a qualifying instrument dated 31 January is payable one month after date in a non-leap year. The monthly period ends on 28 February under the fallback rule; the applicable grace and public-holiday rules must then be considered separately.
Practical decision flow
Identify the number of months and the relevant triggering date or event.
Find the corresponding calendar date or the ending month’s last day.
Apply the appropriate grace and holiday rules and retain the calculation record.
Practical checklist
Do
- Identify the number of months and the relevant triggering date or event.
- Find the corresponding calendar date or the ending month’s last day.
- Apply the appropriate grace and holiday rules and retain the calculation record.
Avoid
- Do not substitute a fixed number of days for every month. Distinguish the end of the stated monthly period from final maturity after applying the relevant grace and holiday provisions.
Glossary
- Corresponding day
- The same day number in the month where the stated period ends.
- Last-day fallback
- Use of the ending month’s last day when it lacks a corresponding date.
Frequently asked questions
Is one month always thirty days here?
No. The section uses corresponding calendar days and a last-day fallback.
What if the ending month has no matching day?
The stated period terminates on that month’s last day.
Are the 1878 dates in the quotation current transaction dates?
No. They are the Act’s own historical illustrations of the calculation rule.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026