Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

VIKAS GARG (LAWYER)     31 May 2009

noting and protest

please explian and make me understand meaning of "noting and protest" give under negotiable instruments act. please explain it in detail and including its implications.

 

thanks



Learning

 2 Replies

A V Vishal (Advocate)     31 May 2009

Dear Garg

Under the NI Act, noting and protest are important since the Notary certifies that the instrument is dishonoured, according to S.99. Noting: When a promissory note or bill of exchange ha s been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or upon a paper attached thereto, or partly upon each.

Such note must be made within a reasonable time after dishonour, and must specify the date of dishonour, the reason, if any, assigned for such dishonour, or, if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, and the notary's charges.

 and as per S.100 Protest : When a promissory note or bill of exchange has been
dishonoured by non-acceptance or non-payment, the holder may, within a reasonable
time, because such dishonour to be noted and certified by a notary public. Such
certificate is called a protest.
Protest for better security. When the acceptor of a bill of exchange has become
insolvent, or his credit has been publicly impeached, before the maturity of the bill, the
holder may, within a reasonable time, cause a notary public to demand better security of
the acceptor, and on its being refused may, within a reasonable time,
cause such facts to be noted and certified as aforesaid. Such certificate is called a
protest for better security.

 

1 Like

d.daniel ambrose (senior partner)     18 January 2010

 dear sir/madam,

kindly send me a copy of format for noting and protest if available;

thanking you,

d.daniel,

advocate.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register