Sections 23-25 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.
Sections 23, 24 and 25 tell you how to work out the maturity date of a note or bill that is payable a number of months or days after date, sight or an event, and what happens when that day is a public holiday. This article reads them as per the consolidated text consulted and works through the three illustrations to section 23. If you are about to rely on a computed due date in a demand, a legal consultation to check the arithmetic is a sensible precaution.
For months, the period ends on the corresponding day of the month; if that month has no such day, on the last day of that month. For days, the day of the date, presentment, protest or event is excluded. If the maturity day is a public holiday, the instrument is due on the next preceding business day. "Public holiday" includes Sundays and any day the Central Government declares by notification in the Official Gazette.
Section 23: months after date or sight
The text says that in calculating the date at which a promissory note or bill of exchange, made payable at a stated number of months after date or after sight, or after a certain event, is at maturity, the period stated shall be held to terminate on the day of months which corresponds with the day on which the instrument is dated, or presented for acceptance or sight, or noted for non-acceptance, or protested for non-acceptance, or the event happens, or, where the instrument is a bill of exchange made payable a stated number of months after sight and has been accepted for honour, with the day on which it was so accepted. If the month in which the period would terminate has no corresponding day, the period shall be held to terminate on the last day of such month.
That is one long sentence. It can be read as a two-step method.
- Find the starting day. The starting day is whichever applies to the instrument: the date of the instrument, presentment for acceptance or sight, noting or protest for non-acceptance, the happening of the event, or, for a bill payable months after sight that has been accepted for honour, the day of acceptance for honour.
- Go forward the stated number of months to the corresponding day. The period terminates on the day of that month that corresponds with the starting day.
If the target month has no corresponding day, the period ends on the last day of that month.
Then section 22 adds the three days of grace, unless the instrument is payable on demand, at sight or on presentment (see our article on sections 21 and 22).
The three illustrations
The text gives three illustrations, with old dates. They are part of the text and are shown here as examples of the method, not as current dates.
| Illustration | Instrument | Period terminates | Maturity as printed |
|---|---|---|---|
| (a) | Dated 29 January 1878, payable one month after date | February has no 29th in 1878, so the last day, 28 February | The third day after 28 February 1878 |
| (b) | Dated 30 August 1878, payable three months after date | 30 November | 3 December 1878 |
| (c) | Dated 31 August 1878, payable three months after date | November has no 31st, so 30 November | 3 December 1878 |
The reasoning in the "period terminates" column is the method of the section applied to the printed dates, and the text states the results in the last column. Illustration (a) in the text says the instrument "is at maturity on the third day after the 28th February, 1878". Illustration (b) and (c) both end on 3 December 1878. Notice that (b) and (c) have different dated days (30 and 31 August) but the same maturity because November has only thirty days.
Section 24: days after date or sight
The text says that in calculating the date at which a promissory note or bill of exchange made payable a certain number of days after date or after sight or after a certain event is at maturity, the day of the date, or of presentment for acceptance or sight, or of protest for non-acceptance, or on which the event happens, shall be excluded.
These counting rules matter only for instruments with a stated period; an instrument payable on demand has none to count (see our article on sections 17 to 19). The rule is short: exclude the starting day. If a note is dated 1 March and payable thirty days after date, day one is 2 March, not 1 March. Counting thirty days from 2 March brings the period to 31 March. Then the days of grace under section 22 are added.
| Instrument | Period | Starting day | Counting begins |
|---|---|---|---|
| Note dated 1 March, 30 days after date | 30 days | 1 March (excluded) | 2 March |
| Bill presented for acceptance 10 April, 45 days after sight | 45 days | 10 April (excluded) | 11 April |
The dates are invented. Section 24 says "the day of ... protest for non-acceptance" but does not mention noting for non-acceptance, unlike section 23, which mentions both noting and protest. The text is printed that way, and this article reports it as printed without reading anything into the difference.
Section 25: maturity on a public holiday
The text says that when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day.
Explanation: the expression "Public holiday" includes Sundays and any other day declared by the Central Government, by notification in the Official Gazette, to be a public holiday.
Two points deserve emphasis.
- Direction. The instrument is due on the next preceding business day, that is, earlier, not later. A reader who assumes the due date moves to the next working day after the holiday has the direction reversed.
- What counts as a public holiday. The Explanation says it includes Sundays and days declared by the Central Government by notification in the Official Gazette. The word "includes" shows the definition is not exhaustive on its face. The text does not list any holidays and does not mention holidays declared by anyone other than the Central Government, so this article says nothing about them.
Putting the steps in order
A cautious reading of the three sections gives this order for a note or bill not payable on demand:
- Work out the end of the period: months under section 23, days under section 24.
- Add the days of grace under section 22.
- If the resulting day is a public holiday under section 25, treat the instrument as due on the next preceding business day.
The text consulted does not state this order expressly, and does not give an illustration that combines all three. The order above is the author's reading of how the sections fit together. Check the text and the facts before relying on it.
A worked example
Pooja Garments gives Qureshi Fabrics a bill payable three months after date, dated 30 November. Three months forward is 28 or 29 February, depending on the year; the corresponding day, 30, does not exist in February, so the period terminates on the last day of that month. The days of grace then take the date three days past that. If that final day happens to be a Sunday, section 25 deems the instrument due on the next preceding business day.
A day-count example: a note dated 15 July payable forty-five days after date. The 15th is excluded and counting starts on 16 July. The forty-fifth day lands in the last days of August; add three days of grace under section 22 to find maturity, then check section 25.
Need help with a maturity date?
If the due date on a bill or note affects a notice, a suit or a settlement, we can go through the calculation with you and the original papers. Reach us through legal consultation.
Key takeaways
- For a period in months, the period ends on the corresponding day of the month; if there is none, on the last day of that month.
- For a period in days, the day of the date, presentment, protest or event is excluded.
- Section 22's three days of grace are then relevant for instruments not payable on demand, at sight or on presentment.
- A maturity falling on a public holiday is moved to the next preceding business day.
- "Public holiday" includes Sundays and days declared by the Central Government by notification in the Official Gazette.
Read next
- Sections 21-22: at sight, after sight, maturity and days of grace
- Section 26: capacity to make instruments
- Sections 17-19: ambiguous instruments, amount in words and payable on demand
- Limitation period for contract suits
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.