Sections 93-94 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 93 says who must give notice that a note, bill or cheque has been dishonoured and to whom it must go. Section 94 says how the notice may be given: to whom, in what form, what it must say, when and where. This article reads both as per the consolidated text consulted.
When an instrument is dishonoured by non-acceptance or non-payment, the holder, or a party who remains liable, must give notice to all other parties he seeks to make severally liable, and to some one of several parties he seeks to make jointly liable. No notice is necessary to the maker, drawee or acceptor (section 93). The notice may be oral or written, in any form, but must say that the instrument has been dishonoured, in what way, and that the party will be held liable; it must be given within a reasonable time, at the place of business or, failing that, the residence (section 94).
Where these sections fit
Sections 91 and 92 say when an instrument is dishonoured; see dishonour by non-acceptance and by non-payment. Sections 93 and 94 say who gives notice and how. Section 95 onwards covers passing the notice on, and section 98 lists the cases where no notice is necessary. If you are about to send or answer such a notice, our legal notice drafting service can help you structure it to meet these requirements.
Section 93: by and to whom notice should be given
Section 93 reads: "When a promissory note, bill of exchange or cheque is dishonoured by non-acceptance or non-payment, the holder thereof, or some party thereto who remains liable thereon, must give notice that the instrument has been so dishonoured to all other parties whom the holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly liable thereon."
Who gives it
- The holder, or
- Some party thereto who remains liable thereon.
So the duty is not only the holder's. A party still liable on the instrument can also give the notice.
To whom
| The holder seeks to make parties... | Notice must go to... |
|---|---|
| Severally liable | All of those other parties |
| Jointly liable | Some one of them |
The distinction between several and joint liability is one of the section's practical points. If a holder wants to proceed against each indorser separately, each must receive notice. If he wants to proceed against a group who are jointly liable, notice to one of them is what the section requires.
Who need not be given notice
The second paragraph says: "Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory note, or the drawee or acceptor of the dishonoured bill of exchange or cheque."
The maker, drawee and acceptor are the persons who made default in the first place; section 93 does not require notice to them. The text does not say that notice to them is forbidden or ineffective, and it does not address how a holder should demand payment from them.
Section 94: mode in which notice may be given
Section 94 is one long sentence. It can be broken up as follows.
To whom the notice may be given. To "a duly authorized agent of the person to whom it is required to be given", or, "where he has died, to his legal representative", or, "where he has been declared an insolvent, to his assignee". For how an agent's authority is judged, see Section 188 of the Indian Contract Act, 1872: Extent of Agent's Authority.
Form. The notice:
- may be oral or written;
- may, if written, be sent by post; and
- may be in any form.
Content. "It must inform the party to whom it is given, either in express terms or by reasonable intendment":
- that the instrument has been dishonoured;
- in what way (non-acceptance or non-payment); and
- that he will be held liable thereon.
Time. It "must be given within a reasonable time after dishonour". The text gives no number of days for this notice.
Place. "At the place of business or (in case such party has no place of business) at the residence of the party for whom it is intended."
Post. "If the notice is duly directed and sent by post and miscarries, such miscarriage does not render the notice invalid."
| Element | What section 94 says |
|---|---|
| Recipient | The person, his duly authorised agent, his legal representative if dead, or his assignee if insolvent |
| Form | Oral or written; if written, may go by post; any form |
| Content | Instrument dishonoured, in what way, and that he will be held liable (express or by reasonable intendment) |
| Time | Within a reasonable time after dishonour |
| Place | Place of business, or residence if no place of business |
| Post | If duly directed and sent and it miscarries, the notice is not invalid |
Reading section 94 in practice
"Any form" does not mean "any content". The form carries no prescribed wording, but the three pieces of information are required. A notice that says only "please look into your account" would not meet the content requirement. A notice does not have to be elaborate; it must tell the party the instrument was dishonoured, how, and that he will be held liable. For general guidance on notice formats, see legal notice: format, requirements and drafting tips.
Oral notice is allowed. The text says the notice may be oral. In practice, a holder who relies on an oral notice should be ready to prove it, so a written notice, sent in a way that leaves a record, is the safer course. The section does not describe any proof requirement.
"Reasonable time" is fact-dependent. Section 94 gives no day count. Where the Act deals with reasonable time generally, it is in sections 105 to 107, covered separately in this series.
Post that goes astray. The section protects a holder whose notice was "duly directed and sent by post" but miscarried. "Duly directed" means addressed correctly to the place the section names.
The cheque-bounce periods are different. Section 138 has its own periods for its notice and complaint. Those periods are not found in sections 93 and 94. See Time Limits Under Section 138: Critical Deadlines and do not mix the two.
Example 1. Vaid Brothers hold a bill dishonoured by non-payment. They want to proceed against two indorsers separately, Wali & Co. and Yadav Traders. Section 93 requires notice to both. They also write to the acceptor, which the section does not require.
Example 2. A bill is dishonoured. Two indorsers, Zaidi and Ahmed, are jointly liable on it. The holder gives notice to Zaidi only. Section 93 requires notice to "some one of several parties" whom he seeks to make jointly liable, so notice to one is what the text asks for.
Example 3. Banerji Exports writes to Chandra Agency, an indorser, at its place of business: "The bill for the stated sum drawn on Desai Mart was dishonoured by non-payment on the due date. You will be held liable on it." The letter is sent by registered post to the right address and is lost in the post. Under section 94, if it was duly directed and sent, the miscarriage does not make the notice invalid.
Need help drafting or answering a notice of dishonour?
If you need to give notice of dishonour to indorsers or other parties, or you have received one and need to respond, our legal notice drafting team can help you set out the dishonour, the way it occurred and the liability claimed. Bring the instrument, the return memo and the addresses of the parties.
Key takeaways
- Section 93: the holder, or a party who remains liable, must give notice of dishonour to all parties he seeks to make severally liable, and to some one of those he seeks to make jointly liable.
- No notice is necessary to the maker of a note, or the drawee or acceptor of a bill or cheque.
- Section 94: notice may be given to an authorised agent, a legal representative or an assignee; it may be oral or written, in any form.
- It must say the instrument has been dishonoured, in what way, and that the party will be held liable, within a reasonable time, at the place of business or residence.
- A notice duly directed and sent by post is not invalid if it miscarries.
Read next
- Dishonour by non-acceptance and by non-payment (sections 91-92)
- Passing on notice of dishonour: agent and deceased party (sections 95-97)
- Cheque bounce notice draft: demand under section 138
- Legal notice: format, requirements and drafting tips
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.