Sections 32-34 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 32 makes the maker of a promissory note and the acceptor of a bill of exchange the people primarily bound to pay it. Section 33 limits who can bind himself by acceptance. Section 34 deals with a bill addressed to several drawees who are not partners. This article reads all three as per the consolidated text consulted. If you hold a note or accepted bill that has not been paid and want to enforce it, a recovery suit may be the route to consider after a notice.
In the absence of a contract to the contrary, the maker of a note and the acceptor before maturity of a bill must pay at maturity according to the apparent tenor; an acceptor at or after maturity must pay the holder on demand. On default they must compensate any party for loss or damage caused. Only the drawee (or one of several drawees), a drawee in case of need or an acceptor for honour can bind himself by acceptance. Several drawees not partners can each accept only for himself, unless authorised to accept for another.
Section 32: liability of maker of note and acceptor of bill
The text says: in the absence of a contract to the contrary, the maker of a promissory note and the acceptor before maturity of a bill of exchange are bound to pay the amount thereof at maturity according to the apparent tenor of the note or acceptance respectively, and the acceptor of a bill of exchange at or after maturity is bound to pay the amount thereof to the holder on demand. In default of such payment as aforesaid, such maker or acceptor is bound to compensate any party to the note or bill for any loss or damage sustained by him and caused by such default.
Reading the first sentence
The sentence has three duties.
| Person | When | Duty |
|---|---|---|
| Maker of a promissory note | At maturity | Pay the amount according to the apparent tenor of the note |
| Acceptor of a bill, accepting before maturity | At maturity | Pay the amount according to the apparent tenor of the acceptance |
| Acceptor of a bill, accepting at or after maturity | On demand | Pay the amount to the holder on demand |
"In the absence of a contract to the contrary" means the parties may agree differently. If the instrument or a separate contract says otherwise, that governs; the section applies where there is none.
"Apparent tenor" means the tenor as it appears on the face of the note or the acceptance. The same phrase appears in the definition of payment in due course in section 10 (see our article on sections 8 to 10).
The maker is the person who makes the promise in a note. The acceptor is a drawee who has signed assent to a bill and delivered it or given notice (see our article on section 7). The maker and the acceptor are primarily liable; the drawer and indorsers are liable in the way later sections describe.
The second sentence: compensation
On default, "such maker or acceptor is bound to compensate any party to the note or bill for any loss or damage sustained by him and caused by such default". Two details.
- The compensation goes to "any party to the note or bill", not only to the holder. A party who had to pay because of the default may therefore claim.
- The measure is "loss or damage sustained by him and caused by such default". The text does not state an amount or rate here. Section 117 deals with the measure of compensation on dishonour and is covered in a later article.
Example with invented names
Uday Ceramics makes a promissory note for a stated sum payable to Vanita Tiles on 20 July. It is not expressed to be payable on demand, so the days of grace in section 22 apply (see our article on sections 21 and 22). At maturity Uday Ceramics must pay according to the apparent tenor of the note. If it fails, it must compensate any party to the note for loss caused by the default, in addition to its duty to pay.
A second case: Waman Traders accepts a bill after the bill has matured. Under the first sentence, an acceptor at or after maturity must pay the holder on demand.
Section 33: who can accept
The text says: no person except the drawee of a bill of exchange, or all or some of several drawees, or a person named therein as a drawee in case of need, or an acceptor for honour, can bind himself by an acceptance.
The list is closed by the words "no person except". The people who can bind themselves by acceptance are:
- the drawee of a bill;
- all or some of several drawees;
- a person named in the bill as a drawee in case of need;
- an acceptor for honour.
A stranger who simply writes "accepted" across the bill and signs does not bind himself by acceptance unless he falls in one of the categories. The text does not say what other liability, if any, he might incur, and this article does not go beyond the words. For the definitions of a drawee in case of need and an acceptor for honour, see section 7; for the later rules on acceptance for honour, the articles on sections 108 to 112 will take them up.
Section 34: several drawees who are not partners
The text says: where there are several drawees of a bill of exchange who are not partners, each of them can accept it for himself, but non of them can accept it for another without his authority. (The copy prints "non of them"; it is a printing slip for "none of them".)
| Situation | Rule |
|---|---|
| Several drawees, not partners | Each can accept for himself |
| One of them accepts for another | Not possible without that other's authority |
The point of the section is that an acceptance binds only the person accepting unless he has authority to bind another. The section speaks of drawees "who are not partners", which suggests that the rule is different for partners, but the text consulted says nothing about partners here, and this article does not describe any rule for them.
Example: a bill is drawn on Xavier and Yamini, who are not partners. Xavier signs assent. That binds Xavier as acceptor for himself. It does not bind Yamini, unless Yamini had authorised Xavier to accept for her. For the general law on agents' authority, see our article on section 188 of the Indian Contract Act, 1872.
How the three sections work together
- Section 32 says who must pay and when: the maker and the acceptor.
- Section 33 says who can become an acceptor.
- Section 34 narrows the case of several drawees who are not partners.
A holder planning to enforce an accepted bill should check the acceptance carefully: who signed it, in what capacity and whether the signer falls within section 33 or section 34.
Need help enforcing a note or an accepted bill?
If a maker or acceptor has not paid on maturity, the papers should be reviewed before any step is taken. We can assess the instrument and the route with you; see our recovery suit service.
Key takeaways
- The maker of a note and the acceptor before maturity of a bill must pay at maturity according to the apparent tenor, unless there is a contract to the contrary.
- An acceptor at or after maturity must pay the holder on demand.
- On default, the maker or acceptor must compensate any party for loss or damage caused by the default.
- Only the drawee, one or more of several drawees, a drawee in case of need or an acceptor for honour can bind himself by acceptance.
- Where several drawees are not partners, each accepts only for himself unless authorised to accept for another.
Read next
- Sections 30-31: liability of drawer and of the drawee bank of a cheque
- Sections 35-36: liability of indorser and of prior parties to a holder in due course
- Sections 21-22: at sight, after sight, maturity and days of grace
- 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.