Negotiable Instruments Act Section 78 — To whom payment should be made

CHAPTER VI OF PAYMENTAND INTEREST

General

Summary

To clear the debt on a promissory note, bill of exchange, or cheque, the person who owes the money must pay the amount to the person who currently holds the instrument. This payment must be made to the holder to legally release the maker or acceptor from their obligation. There is an exception to this rule, which is covered under a specific clause of another section.

Official Text

Subject to the provisions of section 82, clause (c), payment of the amount due on a promissory note, bill of exchange or cheque must, in order to discharge the maker or acceptor, be made to the holder of the instrument.