Chapter IV - Of Negotiation
Section 60
Section 60: Negotiation until payment or satisfaction
Section 60 describes how long negotiation can continue and excludes negotiation by specified obligors after maturity.
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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
A negotiable instrument may be negotiated (except by the maker, drawee or acceptor after maturity) until payment or satisfaction thereof by the maker, drawee or acceptor at or after maturity, but not after such payment or satisfaction.
Key rule and applicability
Negotiation may continue until payment or satisfaction by the maker, drawee or acceptor at or after maturity. Those three parties themselves are excepted from negotiating after maturity, and negotiation cannot continue after the specified payment or satisfaction.
Limits and related provisions
Maturity alone is not the entire cutoff for every holder, and every payment at any time should not automatically be treated as the exact statutory endpoint. Identify who negotiates, the timing and the payer or satisfier.
Hypothetical business example
Hypothetical: a holder proposes to transfer an overdue instrument. It checks whether the maker, drawee or acceptor has already paid or satisfied it at or after maturity and whether the proposed transferor falls within the personal exclusion.
Practical decision flow
Identify maturity and the proposed transferor’s role.
Check payment or satisfaction, who effected it and when.
Apply both the named-party exclusion and the stated final endpoint before negotiating.
Practical checklist
Do
- Identify maturity and the proposed transferor’s role.
- Check payment or satisfaction, who effected it and when.
- Apply both the named-party exclusion and the stated final endpoint before negotiating.
Avoid
- Maturity alone is not the entire cutoff for every holder, and every payment at any time should not automatically be treated as the exact statutory endpoint. Identify who negotiates, the timing and the payer or satisfier.
Glossary
- Satisfaction
- The satisfaction of the instrument referred to by the provision.
- Named-party exclusion
- The exception for maker, drawee or acceptor negotiating after maturity.
Frequently asked questions
Does the section forbid every holder from negotiating immediately at maturity?
No. Its text states the qualified continuation rule and specific exceptions.
Who is expressly excepted after maturity?
The maker, drawee or acceptor.
Can negotiation continue after the payment or satisfaction described?
No. The closing words expressly prohibit it after that payment or satisfaction.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026