Chapter V - Of Presentment
Section 61
Section 61: Presentment of a bill for acceptance
Section 61 explains when a bill payable after sight must be presented for acceptance and when an unsuccessful search for the drawee amounts to dishonour.
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Need advice on Section 61?
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 bill of exchange payable after sight must, if no time or place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable search, be found, by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.
If the drawee cannot, after reasonable search, be found, the bill is dishonoured.
If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the bill is dishonoured.
Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.
Key rule and applicability
For an after-sight bill that specifies no time or place for presentment, a person entitled to demand acceptance must present it within a reasonable time after drawing, during business hours on a business day, if the drawee can be found after reasonable search. A drawee directed to a particular place must be sought there. The search and timing requirements matter because acceptance is the relevant event for an after-sight bill's maturity calculation.
Limits and related provisions
The liability consequence of default is expressed against the person who defaults: no party is liable on the bill to that person. Inability to find the drawee after the required search produces dishonour under the specified conditions. Posting an ordinary demand is not automatically sufficient; registered-letter presentment requires authorization by agreement or usage. Presentment for payment is a separate stage.
Hypothetical business example
Hypothetical: A supplier holds an after-sight bill naming no presentment time or place. The supplier arranges a timely business-hours visit by a person entitled to demand acceptance and records the search for the drawee. A failed reasonable search is assessed under the dishonour rule, rather than treated as acceptance or an arbitrary start date for maturity.
Practical decision flow
Read whether the bill is payable after sight and specifies a presentment time, address or place.
Arrange acceptance presentment by an entitled person and retain evidence of timing, business hours and any reasonable search.
Record acceptance or the statutory basis for dishonour; use registered-letter presentment only where agreement or usage authorizes it.
Practical checklist
Do
- Read whether the bill is payable after sight and specifies a presentment time, address or place.
- Arrange acceptance presentment by an entitled person and retain evidence of timing, business hours and any reasonable search.
- Record acceptance or the statutory basis for dishonour; use registered-letter presentment only where agreement or usage authorizes it.
Avoid
- The liability consequence of default is expressed against the person who defaults: no party is liable on the bill to that person. Inability to find the drawee after the required search produces dishonour under the specified conditions. Posting an ordinary demand is not automatically sufficient; registered-letter presentment requires authorization by agreement or usage. Presentment for payment is a separate stage.
Glossary
- After sight
- A payment term for which the Act identifies an acceptance, noting or protest trigger for a bill.
- Presentment for acceptance
- The step of presenting the bill to its drawee to obtain acceptance.
Frequently asked questions
Does Section 61 concern every cheque?
No. Its opening requirement concerns a bill payable after sight. Cheque payment presentment must be considered under the provisions applicable to cheques.
What if the drawee cannot be found?
The section treats the bill as dishonoured where its applicable reasonable-search and place requirements are satisfied.
Can registered post always replace a visit?
No. The section recognizes registered-letter presentment where agreement or usage authorizes it.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026