Chapter VIII - Of Notice of Dishonour
Section 96
Section 96: agent for presentment
Section 96 allocates notice time when an instrument is deposited with an agent for presentment.
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Need advice on Section 96?
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
When the instrument is deposited with an agent for presentment, the agent is entitled to the same time to give notice to his principal as if he were the holder giving notice of dishonour, and the principal is entitled to a further like period to give notice of dishonour.
Applicability and limits
Applies when the holder deposits an instrument with an agent to present it for acceptance or payment.
It allocates successive periods for agent-to-principal and principal-to-other-party notice; it does not dispense with notice altogether.
Hypothetical example
Hypothetical: a collection agent learns of dishonour on Monday and informs the principal; the principal then has a further like period to notify a prior indorser.
Steps and evidence
Record deposit with the agent and the agent’s receipt of dishonour information.
Track the agent’s notice to the principal.
Calculate and document the principal’s onward-notice period.
Practical checklist
Do
- Confirm the instrument was deposited with an agent for presentment.
- Record when the agent learned of dishonour and notified the principal.
- Calculate the principal’s further like period for onward notice.
Avoid
- It allocates successive periods for agent-to-principal and principal-to-other-party notice; it does not dispense with notice altogether.
Glossary
- Principal
- The person for whom the presentment agent acts.
- Like period
- The corresponding notice interval allowed to the agent, then again to the principal.
Frequently asked questions
Does the principal have a separate notice period?
Yes. Section 96 gives the principal a further like period after the agent’s notice period.
Can the agent wait indefinitely to tell the principal?
No. Section 96 gives the agent the same time as a holder giving notice of dishonour.
Does the principal’s period start from the original dishonour?
The section gives the principal a further like period after the agent’s notice period.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026