Sections 99-100 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 99 and 100 deal with what a holder may do after a promissory note or bill of exchange is dishonoured: have the dishonour noted by a notary public, and have it noted and certified, which produces a protest. As per the consolidated text consulted, Section 100 also adds a separate "protest for better security" when the acceptor of a bill becomes insolvent or loses credit before maturity.
When a promissory note or bill of exchange is dishonoured by non-acceptance or non-payment, the holder may have the dishonour noted by a notary public (Section 99), and may, within a reasonable time, have it noted and certified, which certificate is called a protest (Section 100). Before maturity, if the acceptor of a bill is insolvent or his credit is publicly impeached, the holder may ask a notary public to demand better security. The words are "may": the text does not make noting or protest compulsory in every case. Cheques are not mentioned in these two sections.
Where these sections fit
The Act first explains what dishonour is: dishonour by non-acceptance and non-payment, then notice of dishonour, and the cases where no notice is necessary. Sections 99 and 100 add an optional, more formal record of dishonour made through a notary public. The sections that follow say what a protest must contain, who must be told, and when a bill is required to be protested at all.
The text printed in this copy defines only one term in Section 3, "banker". There is no definition of a notary public in the copy consulted, so this article does not supply one. The reader should check the law governing notaries separately, and may take a legal consultation on how noting fits a particular dispute.
A word on spelling: the Act writes "indorse"; "endorse" is the common spelling.
Section 99: noting
The holder of a promissory note or bill of exchange that has been dishonoured by non-acceptance or non-payment "may cause such dishonour to be noted by a notary public". The text sets out three points.
- Where the note goes. The noting is made upon the instrument, or upon a paper attached to it, or partly upon each.
- When. The note must be made "within a reasonable time after dishonour". The Act's rule on reasonable time is in Sections 105 to 107.
- What it must say. The note must specify the date of dishonour; the reason, if any, assigned for the dishonour; or, if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured; and the notary's charges.
Notice that the notary's charges form part of the required contents. The text gives no figure for them, and this article states none.
Section 100: protest
Under the first paragraph of Section 100, when a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may, "within a reasonable time", cause the dishonour "to be noted and certified by a notary public". The text then names the result: "Such certificate is called a protest."
So noting and protest are related but not identical. Noting is the notary's recorded memorandum of the dishonour. Protest is the notary's certificate, which is a fuller formal document. The contents a protest must carry are listed in Section 101.
Protest for better security
The second paragraph of Section 100 covers a different trigger. If, before the maturity of a bill, the acceptor "has become insolvent, or his credit has been publicly impeached", the holder may, within a reasonable time, cause a notary public to demand better security of the acceptor. If better security is refused, the holder may, with a reasonable time (a printing slip for "within": the text reads "with a reasonable time"), cause the facts to be noted and certified. That certificate is "a protest for better security".
This route is available while the bill has not yet fallen due, which is its point: the holder need not wait for maturity to protect his position when the acceptor's finances are in doubt.
Side by side
| Point | Noting (s.99) | Protest (s.100) | Protest for better security (s.100) |
|---|---|---|---|
| Trigger | Dishonour by non-acceptance or non-payment | Dishonour by non-acceptance or non-payment | Acceptor insolvent or credit publicly impeached before maturity, and better security refused |
| Who acts | Holder, through a notary public | Holder, through a notary public | Holder, through a notary public |
| Time | Within a reasonable time after dishonour | Within a reasonable time | Within a reasonable time for the demand, and a reasonable time after refusal |
| Result | A note on the instrument or an attached paper | A certificate called a protest | A certificate called a protest for better security |
| Instruments | Promissory note or bill of exchange | Promissory note or bill of exchange | Bill of exchange |
A practical example
Example. Harbans Exports holds a bill of exchange drawn on Delta Foods Ltd., accepted by it, and due on 30 November. On 20 October news appears that Delta Foods Ltd. has become insolvent. Under the second paragraph of Section 100, Harbans Exports may within a reasonable time have a notary public demand better security of Delta Foods Ltd. If it refuses, the holder may have the facts noted and certified, producing a protest for better security. Had the bill instead been presented on 30 November and dishonoured, Harbans Exports could have the dishonour noted under Section 99 and, within a reasonable time, noted and certified as a protest under Section 100.
Points to watch
- Cheques. These sections speak of promissory notes and bills of exchange only. The text of Sections 99 and 100 does not mention cheques. For a returned cheque, the offence route is in Section 138 of the Act; do not treat noting and protest as a step in that process.
- Foreign bills. Section 104 says foreign bills must be protested when the law of the place where they are drawn requires it. See Sections 103, 104 and 104A. For how this arises in practice in export trade, see our guide on the bill of exchange in export trade.
- Reasonable time. Section 99 and Section 100 both rely on "a reasonable time". The Act measures it by the nature of the instrument and the usual course of dealing, and public holidays are excluded in the calculation.
- No fees or forms in the text. The text prescribes no form of protest and states no notary fee. Do not assume either.
Need help with a dishonoured bill or note?
If you hold a bill or note that has been dishonoured, or an acceptor has run into trouble before maturity, a short consultation can show which steps remain open and which have lapsed. You can book a legal consultation with us to go through your papers and the dates involved.
Key takeaways
- Noting (s.99) is a notary's record of dishonour on the instrument or an attached paper, made within a reasonable time.
- A protest (s.100) is the notary's certificate that the dishonour has been noted and certified.
- A protest for better security is available when the acceptor of a bill becomes insolvent, or his credit is publicly impeached, before maturity and better security is refused.
- Both sections use "may": they confer a facility and do not by themselves say that every dishonoured instrument must be protested.
- Cheques are not mentioned in these two sections.
Read next
- Sections 101 and 102: contents of protest and notice of protest
- Sections 103, 104 and 104A: protest for non-payment, foreign bills and noting as protest
- Section 98: when notice of dishonour is unnecessary
- Types of negotiable instruments: cheque, bill, promissory note
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.