Chapter VIII - Of Notice of Dishonour
Section 91
Section 91: dishonour by non-acceptance
Section 91 explains when a bill of exchange is dishonoured by non-acceptance.
On this page
Need advice on Section 91?
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 is said to be dishonoured by non-acceptance when the drawee, or one of several drawees not being partners, makes default in acceptance upon being duly required to accept the bill, or where presentment is excused and the bill is not accepted.
Where the drawee is incompetent to contract, or the acceptance is qualified the bill may be treated as dishonoured.
Applicability and limits
A bill is dishonoured by non-acceptance on due refusal, or when presentment is excused and acceptance does not occur; incompetence or qualified acceptance can also support that treatment.
This is about acceptance of a bill, not non-payment of a note or cheque; Section 92 separately defines non-payment dishonour.
Hypothetical example
Hypothetical: a drawee is duly asked to accept a bill and refuses. The holder records the refusal and checks notice duties.
Evidence and decision flow
Establish presentment for acceptance or a statutory excuse.
Record default, qualified acceptance or incapacity.
Assess who must receive notice of dishonour.
Practical checklist
Do
- Confirm due presentment or a statutory excuse.
- Record refusal, qualified acceptance or inability to contract.
- Check the notice requirements in Sections 93 and 94.
Avoid
- Do not assume one statutory step replaces a separate presentment, dishonour or notice requirement.
Glossary
- Drawee
- Person directed by the bill to pay and asked to accept it.
- Qualified acceptance
- Acceptance that changes or limits the bill’s terms.
Frequently asked questions
Can qualified acceptance amount to dishonour?
Section 91 says the bill may be treated as dishonoured where acceptance is qualified.
Can a bill be dishonoured without actual presentment?
Yes, where presentment is excused and it is not accepted.
Does this provision cover non-payment?
Section 91 concerns non-acceptance; Section 92 concerns non-payment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026