Sections 103-104A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These three short sections deal with three separate points on protest: when a bill dishonoured by non-acceptance may be protested for non-payment (Section 103), when a foreign bill must be protested (Section 104), and when noting is enough to meet a protest deadline (Section 104A). As per the consolidated text consulted, each is a single short paragraph.
A bill drawn payable at a place other than the drawee's stated residence, and dishonoured by non-acceptance, may be protested for non-payment in the place specified for payment without presenting it again to the drawee, unless paid before or at maturity (s.103). Foreign bills must be protested for dishonour when the law of the place where they are drawn requires it (s.104). Where a bill must be protested within a specified time, it is sufficient that it has been noted for protest in that time, and the formal protest may be extended later as of the date of the noting (s.104A).
How these sections connect
Protest is the notary's certificate that follows noting; see Sections 99 and 100 and the contents of a protest in Section 101. Foreign and inland instruments are distinguished in Sections 11 and 12, and the law that governs a foreign instrument is in Sections 134 to 137.
The text defines no "notary public" in the copy consulted (Section 3 defines "banker" only), so none is supplied here. A word on spelling: the Act writes "indorse"; "endorse" is the common spelling.
Section 103: protest for non-payment after dishonour by non-acceptance
The text says: all bills of exchange drawn payable at some other place than the place mentioned as the residence of the drawee, and which are dishonoured by non-acceptance, may, "without further presentment to the drawee", be protested for non-payment, in the place specified for payment, "unless paid before or at maturity".
Breaking it down:
- Which bills. Those drawn payable at a place other than the drawee's mentioned residence. Think of a bill where the drawee lives in one town but the bill names a bank in another town as the place of payment.
- What has happened. The bill has been dishonoured by non-acceptance.
- What the holder may do. Protest it for non-payment without presenting it again to the drawee.
- Where. In the place specified for payment.
- The limit. This is "unless paid before or at maturity". If the bill is paid before or at maturity, the protest for non-payment is not available on this section.
The point of Section 103 is to save the holder a second trip. The bill was already refused acceptance, and the section lets the holder go straight to protest for non-payment at the named place.
Section 104: protest of foreign bills
Section 104 is short: "Foreign bills of exchange must be protested for dishonour when such protest is required by the law of the place where they are drawn."
Two points stand out. First, the word is "must", in contrast to the "may" of Sections 99 and 100. For foreign bills, protest is not merely an option where the law of the place of drawing requires it. Second, the section does not itself say which law that is or what it requires. It points outward to the law of the place where the bill is drawn. The text of Section 104 does not set out that foreign law, and this article does not guess at it. A legal consultation is the usual way to confirm the foreign position for a particular bill.
For readers in export trade, where drawing a bill abroad or on a foreign buyer is routine, our guide on the bill of exchange in export trade discusses the practical side of dishonour and protest.
Section 104A: when noting is equivalent to protest
The text reads: "For the purposes of this Act, where a bill of note is required to be protested within a specified time or before some further proceeding is taken it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting."
Note the printing slip "a bill of note", which seems intended to be "a bill or note"; it is quoted as printed.
Put plainly:
- The deadline is met by noting. If a bill (or note) must be protested within a specified time, or before some further step is taken, noting it for protest before that time ends, or before the step is taken, is sufficient.
- The formal protest can follow. The protest may be "extended" at any time afterwards, and it takes effect "as of the date of the noting".
The practical value is that the formal certificate does not have to be ready by the deadline; the earlier note carries the date.
Quick comparison
| Section | Subject | Key words in the text |
|---|---|---|
| 103 | Bill payable at a place other than the drawee's residence, dishonoured by non-acceptance | "without further presentment to the drawee"; "unless paid before or at maturity" |
| 104 | Foreign bills | "must be protested"; "when such protest is required by the law of the place where they are drawn" |
| 104A | Noting as protest | "sufficient that the bill has been noted for protest before the expiration of the specified time"; formal protest "as of the date of the noting" |
Two examples
Example 1 (Section 103). Kavita Impex draws a bill on Raj Foods, whose residence is stated as Jaipur, but the bill is made payable at a bank in Surat. Raj Foods refuses to accept it. Kavita Impex's holder may, without presenting the bill again to Raj Foods, have it protested for non-payment at Surat, unless the bill is paid before or at maturity.
Example 2 (Section 104A). A bill must be protested before a particular proceeding is taken. The holder has the bill noted for protest by a notary before that proceeding. The notary issues the full protest a few days later. Under Section 104A the later protest is treated as of the date of the noting.
What the text leaves open
- It does not say which law applies to a foreign bill; Section 104 only points to the law of the place of drawing.
- It states no time in days for noting or protest. Reasonable time is dealt with in Sections 105 to 107.
- It names no fee for the notary.
Need help with a foreign or dishonoured bill?
If a bill drawn abroad or payable at another place has been dishonoured, the first question is usually which steps are still open. Our team can go through the bill, the dates and the notary's papers with you in a legal consultation.
Key takeaways
- Section 103 lets a holder protest for non-payment, without presenting again to the drawee, a bill payable elsewhere than the drawee's residence and dishonoured by non-acceptance, unless paid before or at maturity.
- Section 104 says foreign bills must be protested when the law of the place where they are drawn requires it.
- Section 104A treats noting before a deadline as enough, with the formal protest dated as of the noting.
- The text gives no fee, no number of days and no content of foreign law.
Read next
- Sections 99 and 100: noting and protest by a notary public
- Sections 134 to 137: foreign instruments and which law applies
- Sections 11 and 12: inland and foreign instruments
- Bill of exchange in export trade
Disclaimer: Based on a consolidated text of the Negotiable Instruments Act, 1881 stating the position as of 26 December 2015 and on the Negotiable Instruments (Amendment) Act, 2018, as consulted on 2 October 2026. Later amendments and current criminal procedure law should be checked. This article is general information, not legal advice; check the official text before acting.