Every instrument is to be presented for payment. Promissory notes bill of exchange and cheques must be presented for payment to the maker, acceptors or drawee thereof respectively. It must be presented by or behalf of the holder. In default of such presentment the other parties thereto are not liable thereon to such holders.
Effect of non presentment for payment
If default is committed in presenting the instrument for payment, all the other parties to the instrument are discharged except the makes, acceptor or drawer of a bill or cheque who continue to be liable. Failure to present the instrument for payment debars the holder from suing the transferor on the original debt. The person liable to pay is not only entitled to the presentment of the instrument for payment but is also entitled to delivery of the instrument after the instrument is paid, for cancellation thereof. If the maker does not take back the instruments he may be held liable to the holder in due course who comes into the possession of the instrument by virtue of indorsement.
Promissory note payable after sight: In case of promissory mote payable at a certain period after sight it must be presented to the maker thereof for sight to fix up the maturity of the note. No payment can be demanded till the note after sight is presented for sight. If default of such presentment is committed all parties thereto are discharged to the person making such default.
Rules as to presentment for payment:
1) Promissory notes bills of exchange and cheques must be presented for payment to maker acceptor or drawee thereof.
2) It must e presented by or no behalf of the holder.
3) If authorized by agreement or usage presentment through the post office, by means of a registered letter is sufficient.
4) A promissory note payable at a certain period after sight must be presented to the maker thereof or sight within a reasonable time after it is made.
5) Presentment for payment must be made during the usual hours of business. Presenting at a bank must be made within banking hours.
6) A promissory note or bill of exchange made payable at specified period after date or sight must be presented for payment at maturity.
7) A promissory note payable by installments must be presented for payment on the third day after the date fixed for payment of each installment.
8) A promissory note, bill of exchange or cheque made drawn or accepted payable at a specified place and not elsewhere must be presented for payment t that place.
9) Where promissory note or bill of exchange is not payable at any particular place, it must be presented at the place of business (if any) or at usual residence of the maker, drawee or acceptor thereof as the case may be.
10) If the maker drawee or acceptor of negotiable instrument has no known place of business or fixed residence and no place is specified for presentment, presentment may be made to him in person wherever he can found.
11) Cheque must be presented at the bank on which it is drawn before the relation between the drawer and is banker has been altered. It must otherwise be presented within a reasonable time.
12) A negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder.
13) Presentment for payment may be to the duly authorized agent of the drawee maker or acceptor, as the case may be. Where the drawee maker or acceptor is dead, presentment may be made to his legal representatives or where he has been declared insolvent presentment may be made to his assignee or receiver.
14) Where an electronic image of a truncated cheque is presented for payment, the drawee bank is entitled to demand any further information regarding the truncated cheque from the bank holding the truncated cheque in case of any reasonable suspicion about the genuineness if the apparent tenor of instrument. If the suspicion is that of any fraud, forgery tampering or destruction of the instrument it is entitled to further demand the presented of the truncated cheque itself for verification. The truncated cheque so demanded by the darwee bank shall be retained by the bank if the payment is made accordingly.