NI ACT BASICS

Important Sections of the NI Act Everyone Should Read

Readers do not need to memorise every provision at once. The following sections provide a useful starting point for understanding cheques, presumptions and cheque-dishonour litigation.

Content review date: 17 October 2026

Important provisions of the Negotiable Instruments Act
Illustrative visual for general legal education. Check the applicable statute and current judgments for case-specific decisions.
Important: This page is general legal information. Check the current statute, binding judgments and facts of the individual case before taking action.

Sections 4, 5 and 6

These provisions define promissory notes, bills of exchange and cheques. Section 6 is particularly relevant to the meaning of a cheque.

Sections 8 and 9

These explain “holder” and “holder in due course”, concepts that may affect entitlement to enforce an instrument.

Section 20

This concerns inchoate stamped instruments. It should not be misread as a universal rule resolving every dispute about a blank cheque.

Section 87

This addresses material alteration, subject to the provision and its exceptions.

Sections 118 and 139

These contain important presumptions relating to negotiable instruments and cheques. Their operation and rebuttal have been explained by courts.

Sections 138 to 142

These cover the cheque-dishonour offence, presumptions, certain excluded defences, company-related liability, cognizance and complaint requirements.

Sections 142A, 143 and 144

These address jurisdiction-related matters, summary trial and service of summons.

Sections 145 and 146

These deal with evidence by affidavit and the evidentiary treatment of a bank slip or memo, subject to the statute.

Sections 147 and 148

These concern compounding of offences and deposit during certain appeals against conviction.

Section 143A

This permits interim compensation in specified circumstances; it is not an automatic payment order in every complaint.

Practical takeaway

Always check the current official statutory text and applicable amendments before relying on a section in court.

PROFESSIONAL INFORMATION

Need guidance on your matter?

Explore the profile of Advocate Javed Ahmad or use the contact options if you need to discuss a specific cheque bounce issue.

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PROFESSIONAL LOCATION

Advocate Javed Ahmad

Chamber No. D-522(B), Karkardooma Court, Shahdara, Delhi – 110032

Chamber No. D-522(B), Karkardooma Court, Shahdara, Delhi – 110032. Please call ahead to confirm appointment availability.

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