Chapter V - Of Presentment
Section 76
Section 76: When payment presentment is unnecessary
Section 76 identifies situations in which payment presentment is unnecessary and the instrument is dishonoured at the due date for presentment.
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Need advice on Section 76?
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
No presentment for payment is necessary, and the instrument is dishonoured at the due date for presentment, in any of the following cases:—
(a) if the maker, drawee or acceptor intentionally prevents the presentment of the instrument, or, if the instrument being payable at his place of business, he closes such place on a business day during the usual business hours, or, if the instrument being payable at some other specified place, neither he nor any person authorized to pay it attends at such place during the usual business hours, or, if the instrument not being payable at any specified place, he cannot after due search be found;
(b) as against any party sought to be charged therewith, if he has engaged to pay notwithstanding non-presentment;
(c) as against any party if, after maturity, with knowledge that the instrument has not been presented—he makes a part payment on account of the amount due on the instrument, or promises to pay the amount due thereon in whole or in part, or otherwise waives his right to take advantage of any default in presentment for payment;
(d) as against the drawer, if the drawer could not suffer damage from the want of such presentment.
Key rule and applicability
The section covers intentional prevention and specified failures of availability at the payment place, an undertaking to pay despite non-presentment, and informed post-maturity part payment, promises or waiver by the party charged. It also protects a claim against a drawer who could not suffer damage from non-presentment. Each ground has its own facts and, in several clauses, its own identified party against whom it operates.
Limits and related provisions
An unsuccessful attempt or an unanswered message does not by itself establish every ground. For post-maturity waiver conduct, the party must know that the instrument was not presented. The drawer-specific no-damage ground cannot automatically be extended to other parties. These general presentment exceptions do not automatically dispense with Section 138's cheque presentation, written-demand and other criminal-liability conditions.
Hypothetical business example
Hypothetical: After maturity, an indorser knows that payment presentment was omitted and expressly promises to pay part of the amount. The holder considers clause (c) against that indorser, while separately checking claims against other parties and any cheque-dishonour prosecution requirements.
Practical decision flow
Select the exact statutory exception and identify the party against whom it is relied upon.
Preserve evidence of prevention, business hours, search, agreement or informed post-maturity conduct as applicable.
Check dishonour notice and any separate Chapter XVII requirements independently before choosing the recovery procedure.
Practical checklist
Do
- Select the exact statutory exception and identify the party against whom it is relied upon.
- Preserve evidence of prevention, business hours, search, agreement or informed post-maturity conduct as applicable.
- Check dishonour notice and any separate Chapter XVII requirements independently before choosing the recovery procedure.
Avoid
- An unsuccessful attempt or an unanswered message does not by itself establish every ground. For post-maturity waiver conduct, the party must know that the instrument was not presented. The drawer-specific no-damage ground cannot automatically be extended to other parties. These general presentment exceptions do not automatically dispense with Section 138's cheque presentation, written-demand and other criminal-liability conditions.
Glossary
- Non-presentment
- Failure to present the instrument for payment as otherwise required.
- Waiver
- Giving up the right to rely on non-presentment under the section's applicable conditions.
Frequently asked questions
Does Section 76 excuse every failed payment visit?
No. The facts must fit a specified exception, including its place, search, intention or party-specific requirements.
Does a pre-maturity part payment establish clause (c)?
Clause (c) addresses conduct after maturity with knowledge that the instrument has not been presented.
Does this remove the need for a Section 138 demand notice?
No. General presentment exceptions do not automatically waive the separate statutory conditions for cheque-dishonour prosecution.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026