Chapter VI - Of Payment and Interest
Section 81
Section 81: Showing and delivering the instrument on payment
Section 81 protects a person called on by the holder to pay through inspection, delivery-up or indemnity rights, with specific rules for truncated cheques.
On this page
Need advice on Section 81?
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
(1) Any person liable to pay, and called upon by the holder thereof to pay, the amount due on a promissory note, bill of exchange or cheque is before payment entitled to have it shown, and is on payment entitled to have it delivered up, to him, or if the instrument is lost or cannot be produced, to be indemnified against any further claim thereon against him.
(2) Where the cheque is an electronic image of a truncated cheque, even after the payment the banker who received the payment shall be entitled to retain the truncated cheque.
(3) A certificate issued on the foot of the printout of the electronic image of a truncated cheque by the banker who paid the instrument, shall be prima facie proof of such payment.
Key rule and applicability
Before payment, the liable person is entitled to have the instrument shown; on payment, to have it delivered up. If lost or unproducible, indemnity against a further claim is the stated alternative. The truncated-cheque paragraphs allow the receiving banker to retain the physical cheque and give the specified paying-bank certificate prima facie evidentiary effect.
Limits and related provisions
Do not apply a blanket demand for physical surrender to the truncated-cheque situation without reading subsection (2). Also distinguish the bank receiving payment, which may retain the truncated cheque, from the bank paying the instrument, which issues the certificate described in subsection (3). Prima facie proof is not the same as conclusive proof.
Hypothetical business example
Hypothetical: a holder calls for payment of a lost note. The payer checks the entitlement and arranges the stated indemnity protection against further claims rather than treating a verbal assurance that the note is lost as equivalent to delivery-up.
Practical decision flow
Confirm the holder’s demand and the instrument to be paid.
Arrange inspection and delivery-up, or the appropriate indemnity where the instrument cannot be produced.
For a truncated cheque, keep the relevant bank records and the statutory certificate where issued, distinguishing the banks’ respective roles.
Practical checklist
Do
- Confirm the holder’s demand and the instrument to be paid.
- Arrange inspection and delivery-up, or the appropriate indemnity where the instrument cannot be produced.
- For a truncated cheque, keep the relevant bank records and the statutory certificate where issued, distinguishing the banks’ respective roles.
Avoid
- Do not apply a blanket demand for physical surrender to the truncated-cheque situation without reading subsection (2). Also distinguish the bank receiving payment, which may retain the truncated cheque, from the bank paying the instrument, which issues the certificate described in subsection (3). Prima facie proof is not the same as conclusive proof.
Glossary
- Indemnity
- Protection against a further claim on the lost or unproduced instrument.
- Prima facie proof
- Evidence sufficient on its face, subject to the applicable process for contesting it.
Frequently asked questions
Is inspection a right only after payment?
No. Subsection (1) states an entitlement to have the instrument shown before payment.
What if the instrument is lost or cannot be produced?
The stated alternative is indemnification against any further claim on it against the payer.
Must a truncated cheque always be physically delivered to the payer?
Subsection (2) expressly entitles the banker receiving payment to retain the truncated cheque even after payment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026