Chapter II - Of Notes, Bills and Cheques
Section 25
Section 25: Maturity falling on a public holiday
Section 25 moves the maturity of a note or bill falling on a public holiday back to the next preceding business day.
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Need advice on Section 25?
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 the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding, business day.
Explanation.—The expression “public holiday” includes Sundays: and any other day declared by the Central Government, by notification in the Official Gazette, to be a public holiday.
Key rule and applicability
First determine maturity under the applicable provisions. If that date is a public holiday within the section’s definition, the deemed due date is the preceding business day, not the following one.
Limits and related provisions
The definition includes Sundays and other days declared by Central Government notification in the Official Gazette. A private office closure or an assumed local holiday should not be substituted without checking the relevant legal holiday basis.
Hypothetical business example
Hypothetical: a bill’s calculated maturity falls on a Sunday. Section 25 directs the business to locate the next preceding business day; it should not automatically move payment to Monday.
Practical decision flow
Complete the maturity calculation before checking holidays.
Verify whether the date is a Sunday or a qualifying notified public holiday.
Move backward to the next preceding business day and retain the calendar or notification used.
Practical checklist
Do
- Complete the maturity calculation before checking holidays.
- Verify whether the date is a Sunday or a qualifying notified public holiday.
- Move backward to the next preceding business day and retain the calendar or notification used.
Avoid
- The definition includes Sundays and other days declared by Central Government notification in the Official Gazette. A private office closure or an assumed local holiday should not be substituted without checking the relevant legal holiday basis.
Glossary
- Preceding business day
- The business day before the holiday, as required by the provision.
- Notified public holiday
- A holiday declared by the specified government notification.
Frequently asked questions
Does maturity move to the following working day?
No. Section 25 expressly uses the next preceding business day.
Are Sundays included?
Yes. The explanation expressly includes Sundays.
Is a business’s own closure enough?
Check the statutory definition and applicable notification; a private closure alone does not establish the stated public-holiday condition.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026