Negotiable Instruments Act Section 106 — Reasonable time of giving notice of dishonour

CHAPTER X OF R E A S O N A B L E T I M E

General

Summary

If the person who holds the cheque or bill and the person who must be told about its dishonour are in different places, the notice is considered timely if it is sent by the next post or on the day after the dishonour. If they are in the same place, the notice is timely only if it is sent early enough to arrive the day after the dishonour.

Official Text

If the holder and the party to whom notice of dishonour is given carry on business or live (as the case may be) in different places, such notice is given within a reasonable time if it is dispatched by the next post or on the day next after the day of dishonour. If the said parties carry on business or live in the same place, such notice is given within a reasonable time if it is dispatched in time to reach its destination on the day next after the day of dishonour.