Chapter VIII - Of Notice of Dishonour
Section 95
Section 95: party receiving must transmit notice of dishonour
Section 95 requires onward notice to a prior party whose liability the recipient wishes to preserve.
On this page
Need advice on Section 95?
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
Any party receiving notice of dishonour must, in order to render any prior party liable to himself, give notice of dishonour to such party within a reasonable time, unless such party otherwise receives due notice as provided by section 93.
Applicability and limits
Applies when a notified party wants to enforce recourse against an earlier party on the instrument.
The onward-notice duty has an exception if that earlier party otherwise receives due notice under Section 93.
Hypothetical example
Hypothetical: an indorser receives notice that a bill was dishonoured and wants to recover from a previous indorser. They send onward notice promptly and retain dispatch proof.
Steps and evidence
Map the chain of parties on the instrument.
Record when incoming notice was received.
Check whether the prior party already has due notice; if not, send it within a reasonable time.
Practical checklist
Do
- Record receipt of notice of dishonour.
- Identify each prior party against whom liability is sought.
- Transmit notice within a reasonable time unless that party otherwise received due notice under Section 93.
Avoid
- The onward-notice duty has an exception if that earlier party otherwise receives due notice under Section 93.
Glossary
- Prior party
- An earlier party in the chain against whom recourse is sought.
- Due notice
- Notice of dishonour satisfying the applicable statutory requirements.
Frequently asked questions
Can a recipient rely on the first notice alone?
Section 95 generally requires notice to the prior party the recipient seeks to hold liable, unless that party otherwise receives due notice.
Does receiving notice automatically preserve recourse against a prior party?
No. Section 95 generally requires onward notice to that party unless due notice was otherwise received.
What timing applies?
A reasonable time under Section 95, read with the more specific timing guidance in Section 107.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026