Sections 21-22 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.
Section 21 explains the expressions "at sight", "on presentment" and "after sight". Section 22 defines "maturity" as the date at which a note or bill falls due and adds the rule on days of grace: an instrument not payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable. This article reads both as per the consolidated text consulted. If a due date on an instrument you hold is in doubt, a legal consultation before you act on it is wise.
In a note or bill, "at sight" and "on presentment" mean on demand. "After sight" means, in a note, after presentment for sight, and in a bill, after acceptance, or noting for non-acceptance, or protest for non-acceptance. Maturity is the date at which the instrument falls due. An instrument not payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.
Section 21: the three expressions
The text says: in a promissory note or bill of exchange the expressions "at sight" and "on presentment" means on demand. The expression "after sight" means, in a promissory note, after presentment for sight, and, in a bill of exchange after acceptance, or noting for non-acceptance, or protest for non-acceptance.
(The text prints "means" after two expressions; this is a grammatical slip with no effect on the sense.)
| Expression | In a promissory note | In a bill of exchange |
|---|---|---|
| "At sight" | On demand | On demand |
| "On presentment" | On demand | On demand |
| "After sight" | After presentment for sight | After acceptance, or noting for non-acceptance, or protest for non-acceptance |
"At sight" and "on presentment"
These two mean "on demand". An instrument payable "at sight" is therefore payable on demand, the same status section 19 gives to an instrument with no time specified (see our article on sections 17 to 19).
"After sight"
"After sight" starts a period running, and the event that starts it differs by instrument.
- In a promissory note, the starting point is presentment for sight. The text uses "presentment for sight", and the later provisions on presentment explain it.
- In a bill of exchange, the starting point is one of three events: acceptance, noting for non-acceptance, or protest for non-acceptance.
Why are there three events for a bill? A bill has a drawee who must accept before he is bound. If the drawee does not accept, the bill may be noted or protested for non-acceptance. Whichever happens, the period "after sight" starts from that event. Noting and protest are covered in a later part of the Act.
Example with invented names: a bill is drawn by Seema Exports on Tarun Importers and is expressed to be payable "thirty days after sight". Tarun accepts it on 5 March. The period of thirty days starts from the acceptance. If Tarun refused to accept and the bill were noted for non-acceptance, the period would start from the noting. The calculation of the period itself is in sections 23 and 24 (see our article on sections 23 to 25).
Section 22: maturity and days of grace
The text says: the maturity of a promissory note or bill of exchange is the date at which it falls due. It then has a marginal heading "Days of grace" and says: every promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.
Maturity
"Maturity" is simply the date on which the instrument falls due. It matters because many later rules refer to it, such as the status of a holder who takes the instrument before or after the amount became payable (see our article on sections 8 to 10).
Days of grace
The rule is stated in one sentence:
| Instrument | Days of grace? | Maturity |
|---|---|---|
| Payable on demand | No | When demanded |
| Payable at sight | No | On demand |
| Payable on presentment | No | On demand |
| Any other note or bill | Yes | The third day after the day on which it is expressed to be payable |
So the instruments that do not get days of grace are those expressed to be payable on demand, at sight or on presentment. Every other note or bill is at maturity on the third day after the day on which it is expressed to be payable.
Counting the third day
The text says "the third day after the day on which it is expressed to be payable". If the day on which the instrument is expressed to be payable is 10 June, the third day after is 13 June. The instrument is at maturity on 13 June. The date is invented to show the working. The text does not use the phrase "three days of grace" as such, and this article uses the heading from the text only.
If the maturity date falls on a public holiday, section 25 has a separate rule, covered in the next article of this series.
A cheque and days of grace
A cheque is payable on demand (section 19), so it is not within the days-of-grace rule in section 22. This follows from the words of the two sections. The text does not say more on the point.
A worked example
Vimal Steel makes a promissory note payable to Wadhwa Alloys "on 1 September". It is not expressed to be payable on demand, at sight or on presentment. Under section 22, the note is at maturity on the third day after 1 September, which is 4 September.
Compare a second note by Vimal Steel payable "at sight". Under section 21, "at sight" means on demand. No days of grace apply, because section 22's rule is for instruments not expressed to be payable on demand, at sight or on presentment.
Compare a third: a bill payable "twenty days after sight" is accepted on 2 April. Its period begins from acceptance; its maturity is worked out under sections 23 and 24 and then the three days under section 22 are added, because the bill is not payable on demand, at sight or on presentment. The text consulted does not give an illustration combining the two rules, and the reader should work through each step with the text before relying on a date.
Points to take care over
- Expressed date. The three days run from "the day on which it is expressed to be payable". Where the instrument gives a period instead of a date, first work out the date under sections 23 and 24.
- Instrument type. The "after sight" start point differs for notes and bills.
- Printing. The consolidated copy has small grammatical slips in section 21; the sense is clear.
Need help fixing a due date?
If you are collecting on a note or bill and need the right maturity date before sending a demand, we can check the calculation with you. Speak to us about legal consultation.
Key takeaways
- "At sight" and "on presentment" mean on demand.
- "After sight" runs from presentment for sight in a note, and from acceptance, noting for non-acceptance or protest for non-acceptance in a bill.
- Maturity is the date at which an instrument falls due.
- An instrument not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.
- A cheque is payable on demand and does not fall in the days-of-grace rule.
Read next
- Sections 17-19: ambiguous instruments, amount in words and payable on demand
- Sections 23-25: calculating maturity and maturity on a public holiday
- Section 20: inchoate stamped instruments
- Types of negotiable instruments
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.