Chapter VIII - Of Notice of Dishonour
Section 92
Section 92: dishonour by non-payment
Section 92 defines dishonour by non-payment for notes, bills and cheques.
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Need advice on Section 92?
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 promissory note, bill of exchange or cheque is said to be dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque makes default in payment upon being duly required to pay the same.
Applicability and limits
Non-payment dishonour occurs when the maker of a note, acceptor of a bill or drawee of a cheque defaults after being duly required to pay.
A payment dispute alone does not prove due requirement and default; preserve presentment and return records.
Hypothetical example
Hypothetical: a bank returns a cheque unpaid after due presentation. The holder keeps the bank memo and demand trail to establish non-payment.
Evidence and decision flow
Identify who was legally required to pay.
Preserve due payment requirement or presentment evidence.
Record the default and move to notice analysis.
Practical checklist
Do
- Identify the maker, acceptor or drawee obliged to pay.
- Preserve the demand/presentment record.
- Record non-payment and assess any notice obligations separately.
Avoid
- Do not assume one statutory step replaces a separate presentment, dishonour or notice requirement.
Glossary
- Maker
- Person who undertakes payment of a promissory note.
- Non-payment dishonour
- Failure of the relevant payer to pay after due requirement.
Frequently asked questions
Does Section 92 include cheques?
Yes. It expressly names the drawee of a cheque.
What follows dishonour?
Notice and liability are separate questions addressed by Sections 93 onward.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026