Chapter VIII - Of Notice of Dishonour
Section 94
Section 94: mode in which notice may be given
Section 94 sets permitted modes, content, destination and reasonable timing for notice of dishonour.
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Need advice on Section 94?
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
Notice of dishonour may be given to a duly authorized agent of the person to whom it is required to be given, or, where he has died, to his legal representative, or, where he has been declared an insolvent, to his assignee; may be oral or written; may, if written, be sent by post; and may be in any form; but it must inform the party to whom it is given, either in express terms or by reasonable intendment, that the instrument has been dishonoured, and in what way, and that he will be held liable thereon; and it must be given within a reasonable time after dishonour, at the place of business or (in case such party has no place of business) at the residence of the party for whom it is intended.
If the notice is duly directed and sent by post and miscarries, such miscarriage does not render the notice invalid.
Applicability and limits
Dishonour notice may be oral or written, including post, but must convey the dishonour, how it occurred and the recipient’s asserted liability within a reasonable time.
A vague payment reminder that omits those elements may not satisfy the statutory notice description; proper addressee and address matter. Notice is given at the place of business, or at the residence only if the party has no place of business.
Hypothetical example
Hypothetical: a holder posts a notice to an indorser’s business address identifying the bill, non-payment and intended liability, retaining dispatch proof.
Evidence and decision flow
Identify party, authorised agent or relevant representative.
State dishonour, its manner and liability asserted.
Give notice within reasonable time at the place of business, or at the residence if the party has no place of business, and retain proof.
Practical checklist
Do
- Address the party or authorized agent/representative.
- State the dishonour, its manner and the liability asserted.
- Give notice within a reasonable time at the proper address; retain dispatch evidence.
Avoid
- Do not assume one statutory step replaces a separate presentment, dishonour or notice requirement.
Glossary
- Notice of dishonour
- Communication of the instrument’s dishonour and claimed liability.
- Reasonable intendment
- Meaning conveyed by the notice even without formulaic wording.
Frequently asked questions
Must notice of dishonour be written?
No. Section 94 permits oral or written notice, while prescribing what it must communicate.
Must notice use a prescribed form?
No. Section 94 permits any form if the required information is conveyed.
What if properly posted notice miscarries?
The section says miscarriage does not invalidate notice if it was duly directed and sent by post.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026