Negotiable Instruments Act Section 135 — Law of place of payment governs dishonour

CHAPTER XVI O F I N T E R N A T I O N A L LA W

General

Summary

If a promissory note, bill of exchange, or cheque is meant to be paid in a place different from where it was created or signed, the rules of that payment place decide what counts as a dishonour and what kind of notice of dishonour is enough. In other words, the location where the payment is supposed to happen sets the standards for these matters.

Official Text

Where a promissory note, bill of exchange or cheque is made payable in a different place from that in which it is made or indorsed, the law of the place where it is made payable determines what constitutes dishonour and what notice of dishonour is sufficient.