Negotiable Instruments Act Section 98 — When notice of dishonour is unnecessary
CHAPTER VIII OF NOTICE OF DISHONOUR
General
Summary
Notice of dishonour is not required in certain situations. These include when the person who would receive the notice gives it up, when the drawer has already stopped payment, or when the person to be charged would not suffer any loss from not getting the notice. It is also unnecessary if the person entitled to notice cannot be found after a proper search, or if the person required to give notice is unable to do so through no fault of their own. Additionally, no notice is needed when the acceptor is also the drawer, when the instrument is a non-negotiable promissory note, or when the person entitled to notice, knowing the facts, makes an unconditional promise to pay the amount due.
Official Text
No notice of dishonour is necessary—
(a) when it is dispensed with by the party entitled thereto;
(b) in order to charge the drawer, when he has countermanded payment; (c)when the party charged could not suffer damage for want of notice;
(d) when the party entitled to notice cannot after due search be found; or the party bound to give notice is, for any other reason, unable without any fault of his own to give it;
(e) to charge the drawers, when the acceptor is also a drawer;
(f) in the case of a promissory note which is not negotiable;
(g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.