Presentment- Presentment means exhibiting the bill to the drawee so that he may see the same and judge

whether he may accept it or not. The person liable to pay is entitled to see the instrument before payment and after payment he is entitled to have it delivered to him. There must be a definite proof of presentment. In default of such presentment, the other parties to the instrument are nor liable. There are two types of presentment: Presentment for acceptance Presentment for payment Presentment for Acceptance: Presentment for acceptance means presenting the bill to the drawee for acceptance thereof and fixing the date of maturity of the instrument where the bill is payable after sight, i.e. at a future date. Instrument requirement for presentment for acceptance Acceptance is required only in case of bills. Promissory notes and cheques require no acceptance. However all bills do not require acceptance but in case of the below bills presentment for acceptance is required. 1. Bills payable after sight, to be presented for acceptance to fix its date of maturity; & 2. Bills which expressly stipulates that it shall be presented for acceptance before presenting it for payment. Effects of non-presentment: If the bill is not presented for acceptance where it is necessary, all the parties to the bill are discharged and no action is maintainable even for the original debt. Following bills need not be present for acceptance 1. bills payable on demand & 2. bills payable on certain date. In the above cases presentment for acceptance is optional, it is acceptable that the bill to be presented for acceptance because of the following advantages. 1. The holder gets an additional security i.e. the acceptor. He can make himself liable for payment. 2. The holder can immediately hold the drawer liable in case if the bill is dishonored by the drawee for non-acceptance. He need not wait till the maturity date of the bill. Rules as to presentment for acceptance: 1. The bill of exchange payable after sight, if no time or place is specified therein for presentment, must be presented to the drawee for acceptance within a reasonable time after it is drawn. In any case it must be presented before maturity. 2. It must be presented by a person entitled to demand acceptance. 3. It must be presented in business hours on a business day.

4. If the bill is directed to the drawee at a particular place, it must be presented at that place. 5. It after reasonable search, drawee cannot be found, the bill is dishonored. 6. If the drawee has no known place of business or fixed residence and no place is specified, presentment is made to him in person where he is found. Presentment for acceptance is therefore to be made to the drawee or to his dully authorized agent in clear and unequivocal terms. In case of several drawees, presentment for acceptance must be made to all of them. When is presentment of acceptance not necessary? 1. Drawee cannot be found in case of reasonable search. 2. When drawee is fictitious (untrue) person. 3. Where acceptance is refused by the drawee. Presentment for Payment Every instrument is to be presented for payment. Promissory notes, bills of exchange and cheques must be presented for payment to the maker, acceptor, or drawee thereof respectively. It must be presented by or on behalf of the holder. In default of such presentment, the other parties thereto are not liable thereon to such folder. 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 maker, acceptor or the drawee 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 instrument after the instrument is paid for cancellation thereof. 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 be presented by or on behalf of the holder. 3. If authorized by agreement or usage, presentment through post office, by means of registered letter is sufficient. 4. A promissory note payable at certain period after sight must be presented to the maker thereof for sight, within a reasonable time after it is made. 5. Presentment for payment must be made during the usual hours of business. Presentment at a bank must be made within banking hours. 6. Cheque must be presented at a bank on which it is drawn before the relation between the drawer and his banker has been altered. It must otherwise be presented within a reasonable time.

7. A negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder. Delay when excused (Sec 75A) Delay in presentment for acceptance is excused, if the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence. When the case of delay ceases to operate, the presentment must be made within a reasonable time. Reasonable time of presentment for acceptance or payment: (Sec 105) In determining what reasonable time is, regard shall be had to nature of the instrument and the usual course of dealing with respect to similar instruments. In calculating such time, public holidays shall be excluded. Regard shall also had to the interest of parties and the distance between the places where the instrument is drawn and where it is made acceptable and payable. Reasonable time is mixed question of law and fact. Both presentment for acceptance and payment must be made within a reasonable time. When is Presentment for payment not necessary? - Exceptions Cases in which negotiable instruments need not be presented for payment ans still it may be treated as dishonored. (Sec 76) Demand promissory note Where promissory note is not payable on demand & at a specific place. Intentionally prevented If the maker, drawee or the acceptor intentionally prevents the presentment of the instrument, for example he misleads the holder. Business place closed If the instrument is payable at the place of business of the maker or the acceptor or drawee and he closes such place of business on the business day during the usual business hours.