Presentment for Acceptance and for Sight (Sections 61 to 63)

Chapter V of the Act deals with presentment: showing the instrument to the party who is expected to accept or pay it, and asking him to do so. Presentment is not a formality. If the holder fails to present when the Act requires it, the parties who are only secondarily liable may be discharged. This note covers presentment of bills for acceptance, presentment of notes for sight, and the drawee's time to decide.

1. Why Presentment for Acceptance Matters

Fixing maturity: for a bill payable after sight, time runs from acceptance (or noting or protest for non-acceptance), so the bill has no maturity date until it is presented (Section 21; Topic 11).
Binding the drawee: the drawee is not liable until he accepts (Topic 18). Presentment gives the holder an early commitment from the person who is to pay.
Early warning: if the drawee refuses, the bill is dishonoured by non-acceptance and the holder can proceed at once against the drawer and indorsers (Section 91; Topic 29).

2. When Presentment for Acceptance Is Compulsory (Section 61)

Section 61, Negotiable Instruments Act, 1881

A bill of exchange payable after sight must, if no time or place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can after reasonable search be found, by or on behalf of the holder within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.

If the drawee cannot, after reasonable search, be found, the bill is dishonoured.

If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the bill is dishonoured.

Where authorised by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.

Which bills: bills payable after sight must be presented for acceptance. Other bills (payable on demand or at a fixed time after date) need not be, though the holder may choose to present them.
Specified time or place: if the bill itself specifies a time or place for presentment, that governs.
By whom and to whom: by or on behalf of the holder, to the drawee or his authorised agent, legal representative or insolvency assignee (Section 75).
When: within a reasonable time after the bill is drawn, in business hours on a business day. What is reasonable depends on the nature of the instrument and the usual course of dealing (Section 105; Topic 30).
Drawee not found: if, after reasonable search, the drawee cannot be found, the bill is treated as dishonoured.
By post: presentment by registered post suffices if authorised by agreement or usage.
Consequence of default: no party to the bill is liable to the holder who fails to present it as required.

3. Promissory Notes Payable After Sight (Section 62)

Section 62, Negotiable Instruments Act, 1881

A promissory note, payable at a certain period after sight, must be presented to the maker thereof for sight (if he can after reasonable search be found) by a person entitled to demand payment, within a reasonable time after it is made and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.

A note is never "accepted", but a note payable after sight has no maturity date until the maker has "seen" it. Section 62 therefore requires presentment for sight within a reasonable time, on the same terms and with the same consequence of default as Section 61.

4. The Drawee's Time for Deliberation (Section 63)

Section 63, Negotiable Instruments Act, 1881

The holder must, if so required by the drawee of a bill of exchange presented to him for acceptance, allow the drawee forty-eight hours (exclusive of public holidays) to consider whether he will accept it.

Right of the drawee: if he asks, the drawee is entitled to 48 hours, excluding public holidays, to decide. Until then the bill is not dishonoured.
Limit for the holder (Section 83): if the holder allows more than 48 hours, all previous parties who do not consent to the extension are discharged from liability to him (Topic 28).

5. Excuses for Delay and Non-presentment

Excused delay (Section 75A): delay in presentment for acceptance or payment is excused if caused by circumstances beyond the holder's control and not due to his default, misconduct or negligence. Once the cause ceases, he must present within a reasonable time.
Drawee not found or incapable: where the drawee cannot be found after reasonable search, or is incompetent to contract, the bill may be treated as dishonoured (Sections 61 and 91).
Presentment to representatives (Section 75): where the drawee has died, presentment may be made to his legal representative, and where he has been declared insolvent, to his assignee.

⚠ Key point

A bill payable after sight must be presented to the drawee for acceptance, and a note payable after sight to the maker for sight, by the holder, within a reasonable time, in business hours on a business day, unless the instrument specifies a time or place; default releases all parties as against the defaulting holder (Sections 61 and 62). If the drawee cannot be found after reasonable search, the bill is dishonoured; presentment by registered post suffices where agreed or customary. The drawee may require 48 hours to decide (Section 63), but a holder who allows more discharges non-consenting prior parties (Section 83). Delay caused by circumstances beyond the holder's control is excused (Section 75A).

6. Related Topics and Provisions

Acceptance (Topic 18)
Presentment for payment (Topic 26)
Dishonour (Topic 29)
Notice of dishonour and reasonable time (Topic 30)