Sections 72-74 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 72 to 74 deal with the timing of presentment of a cheque and of other instruments payable on demand. Section 72 covers presentment to charge the drawer, section 73 covers presentment to charge anyone else, and section 74 covers any instrument payable on demand. This article reads them as per the consolidated text consulted.
To charge the drawer, a cheque must be presented at the bank on which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer, subject to section 84 (section 72). To charge any other person, a cheque must be presented within a reasonable time after delivery by that person (section 73). An instrument payable on demand must be presented within a reasonable time after it is received by the holder, subject to section 31 as printed (section 74).
How these sections fit together
Section 64 requires presentment for payment and says what happens if it is not done; see presentment for payment and truncated cheques. Sections 72 to 74 address timing for cheques and demand instruments. What "reasonable time" means is not defined in sections 72 to 74; section 84(2) gives the factors, and that is explained in cheque not presented in time and drawer damaged.
If a cheque you hold was presented late and you need to decide how to proceed, a recovery notice drafted on the correct dates is the usual next step. The sections below explain the dates that matter.
Section 72: presentment to charge the drawer
Section 72 reads: "Subject to the provisions of section 84 a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer."
Unpack it:
- Subject to section 84. Section 84 deals with a cheque not presented within a reasonable time of its issue and the drawer suffering actual damage. Section 72 operates subject to it.
- Where. At the bank upon which the cheque is drawn.
- When. Before the relation between the drawer and his banker has been altered to the drawer's prejudice.
Note what this does not say. Section 72 does not state a number of days or months. It ties the time limit to a change in the drawer-banker relationship that harms the drawer. For example, if the bank fails or the drawer's balance is affected, that may alter the relation. The text consulted does not list the events and none is assumed here beyond the words "altered to the prejudice of the drawer".
Example. Fernandes Interiors draws a cheque on its bank in favour of a supplier. Before the supplier presents it, the bank is in difficulty and Fernandes Interiors' position with it is altered to its prejudice. To charge Fernandes Interiors as drawer, the cheque had to be presented before that alteration, subject to section 84.
Section 73: presentment to charge any other person
Section 73 states: "A cheque must, in order to charge any person except the drawer, be presented within a reasonable time after delivery thereof by such person."
- Who is covered. "Any person except the drawer", for example an indorser.
- Time test. Within a reasonable time after delivery of the cheque by such person. The clock for each person starts from his own delivery, not from the date of the cheque.
So a holder who wants to proceed against an indorser looks at when that indorser delivered the cheque. A holder who waits too long may lose the claim against that indorser.
The liability of indorsers in general is covered in the article on sections 35 and 36.
Section 74: instrument payable on demand
Section 74 provides: "Subject to the provisions of section 31, a negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder."
- Which instruments. A negotiable instrument payable on demand.
- Time test. Within a reasonable time after it is received by the holder.
- Subject to section 31. The section is printed as "subject to the provisions of section 31". Section 31 concerns the duty of a drawee of a cheque who has sufficient funds, as explained in the article on sections 30 and 31. We quote the cross-reference as printed and do not explain how the two interact beyond what the words say.
The three tests side by side
| Section | Who is to be charged | Where | Time test |
|---|---|---|---|
| 72 | The drawer | At the bank on which the cheque is drawn | Before the drawer-banker relation is altered to the drawer's prejudice (subject to section 84) |
| 73 | Any person except the drawer | Not stated in the section | Within a reasonable time after delivery by that person |
| 74 | Parties to an instrument payable on demand | Not stated in the section | Within a reasonable time after receipt by the holder (subject to section 31 as printed) |
The Act does not define "reasonable time" in these three sections. For general guidance on how the Act treats reasonable time, the later sections on that subject (sections 105 to 107) lay out the approach; they are separate articles in this series.
Practical points
- Present cheques early. The Act speaks of "reasonable time" and offers no fixed day count in these sections.
- Keep the delivery record. For indorsers, time runs from delivery by each person, so record when each indorser handed over the cheque.
- Do not assume the drawer's liability disappears automatically. Section 72 is subject to section 84, which looks at actual damage to the drawer.
- For cheque-dishonour prosecutions, use the dedicated section. Section 138 has its own time periods, which are covered in the existing time limits under section 138 guide. Do not mix the two sets of rules.
Need help with a late-presented cheque?
If a cheque was presented late and the other side relies on that, or you hold a cheque and want to preserve your claims, a recovery notice can state the facts and the amount claimed. Bring the cheque, the delivery history and the bank's return memo.
Key takeaways
- Section 72: to charge the drawer, present at the drawee bank before the drawer-banker relation is altered to the drawer's prejudice, subject to section 84.
- Section 73: to charge anyone else, present within a reasonable time after delivery by that person.
- Section 74: an instrument payable on demand is presented within a reasonable time after it is received by the holder, subject to section 31 as printed.
- None of these sections gives a number of days.
Read next
- Place of presentment for payment (sections 68-71)
- Presentment to agent or legal representative and excuse for delay (sections 75-75A)
- Cheque not presented in time and drawer damaged (section 84)
- Time limits under section 138: critical deadlines
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.