Negotiable Instruments Act Section 107 — Reasonable time for transmitting such notice

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

General

Summary

When someone who receives a notice that a cheque or bill was not paid wants to pass that notice on to an earlier party in the chain, they must do so within a reasonable time. That reasonable time is measured by the same deadline they would have had if they were the original holder of the instrument. In other words, they get the same amount of time to forward the notice as they would have had to send it in the first place.

Official Text

A party receiving notice of dishonour, who seeks to enforce his right against a prior party, transmits the notice within a reasonable time if he transmits it within the same time after its receipt as he would have had to give notice if he had been the holder.