Chapter VII - Of Discharge from Liability on Notes, Bills and Cheques
Section 90
Section 90: Bill held by its acceptor at or after maturity
Section 90 extinguishes rights of action on a negotiated bill when its acceptor holds it in their own right at or after maturity.
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Need advice on Section 90?
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 a bill of exchange which has been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action thereon are extinguished.
Key rule and applicability
Three facts matter: the bill has been negotiated, it is held at or after maturity, and the acceptor holds it in their own right. In that setting, all rights of action on it are extinguished.
Limits and related provisions
Do not equate temporary custody or possession for somebody else with holding in one’s own right. Nor should the maturity condition or the fact of previous negotiation be dropped from the analysis.
Hypothetical business example
Hypothetical: after maturity, an acceptor reacquires a previously negotiated bill in its own right. It reviews section 90’s extinguishment consequence rather than treating the bill as continuing to support ordinary instrument claims unchanged.
Practical decision flow
Confirm the bill’s previous negotiation and maturity date.
Identify how and in what capacity the acceptor now holds it.
Apply the stated consequence only after establishing all three conditions.
Practical checklist
Do
- Confirm the bill’s previous negotiation and maturity date.
- Identify how and in what capacity the acceptor now holds it.
- Apply the stated consequence only after establishing all three conditions.
Avoid
- Do not equate temporary custody or possession for somebody else with holding in one’s own right. Nor should the maturity condition or the fact of previous negotiation be dropped from the analysis.
Glossary
- Own right
- The holding capacity distinguished from custody for another.
- Extinguishment
- The ending of rights of action on the bill in the statutory setting.
Frequently asked questions
Is any custody by the acceptor enough?
The section requires holding in the acceptor’s own right.
Does timing matter?
Yes. The holding must be at or after maturity.
What rights are affected under the stated rule?
All rights of action on that bill.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026