Chapter VII - Of Discharge from Liability on Notes, Bills and Cheques
Section 83
Section 83: Allowing additional time for acceptance
Section 83 addresses the effect on previous parties when a holder allows the drawee more than the stated time to decide whether to accept a bill.
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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
If the holder of a bill of exchange allows the drawee more than forty-eight hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.
Key rule and applicability
Allowing more than forty-eight hours, exclusive of public holidays, discharges previous parties who did not consent to that allowance from liability to that holder.
Limits and related provisions
The consequence is tied to non-consenting previous parties and their liability to the holder; it is not expressed as a release of every person in every relationship. Read section 63’s requested consideration period alongside this provision.
Hypothetical business example
Hypothetical: a holder gives the drawee extra acceptance time beyond the forty-eight-hour allowance. Before doing so, it reviews the consent of earlier parties whose recourse exposure may be affected.
Practical decision flow
Record when the bill was presented and what additional time was allowed.
Calculate the statutory period excluding public holidays.
Document each relevant previous party’s consent before assessing discharge.
Practical checklist
Do
- Record when the bill was presented and what additional time was allowed.
- Calculate the statutory period excluding public holidays.
- Document each relevant previous party’s consent before assessing discharge.
Avoid
- The consequence is tied to non-consenting previous parties and their liability to the holder; it is not expressed as a release of every person in every relationship. Read section 63’s requested consideration period alongside this provision.
Glossary
- Previous parties
- The earlier instrument parties whose consent is relevant.
- Additional allowance
- The consideration time beyond the stated forty-eight-hour period.
Frequently asked questions
Are public holidays counted in the forty-eight hours?
No. They are expressly excluded.
Does a consenting previous party fall within the stated non-consent discharge?
The section targets previous parties not consenting to the allowance.
Which related section gives the requested deliberation time?
Section 63.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026