Library/NIA/Section 98
Section 98Procedural

When notice of dishonour is unnecessary

Full Text

When notice of dishonour is unnecessary.—No notice of dishonour is necessary—

(a) when it is dispensed with by the party entitled thereto;

(b) in order to charge the drawer, when he has countermanded payment;

(c) when the party charged could not suffer damage for want of notice;

(d) when the party entitled to notice cannot after due search be found; or the party bound to give notice is, for any other reason, unable without any fault of his own to give it;

(e) to charge the drawers, when the acceptor is also a drawer;

(f) in the case of a promissory note which is not negotiable;

(g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.

Plain English Summary

Lists the statutory exceptions where notice of dishonour is dispensed with, including stop-payment instructions, waiver, and untraceable parties.

Key Legal Elements

  • Notice dispensed with by express or implied waiver
  • Drawer countermands payment (stop payment)
  • No damage suffered by the party for lack of notice
  • Party cannot be found despite due diligence
  • Acceptor is also a drawer
  • Unconditional subsequent promise to pay with knowledge of facts

Practical Note

Section 98(b) is frequently cited in commercial debt recovery when a drawer issues stop-payment instructions. Note, however, that under the criminal regime of Section 138, sending the statutory 30-day notice is mandatory even if payment was countermanded (Modi Cements Ltd.), whereas in a civil suit under Order 37 CPC, Section 98 dispenses with notice of dishonour.

हिंदी पाठ

अनादर की सूचना कब अनावश्यक होती है।—अनादर की कोई सूचना आवश्यक नहीं है—

(क) जब उसका हकदार पक्षकार उससे अभिमुक्ति दे देता है;

(ख) आहर्ता को प्रभारित करने के लिए, जब उसने संदाय का प्रतिआदेश (countermanded payment / stop payment) कर दिया हो;

(ग) जब प्रभारित पक्षकार सूचना के अभाव में कोई नुकसान नहीं उठा सकता था;

(घ) जब सूचना का हकदार पक्षकार सम्यक् तलाश के पश्चात भी नहीं पाया जा सकता; अथवा सूचना देने के लिए आबद्ध पक्षकार, अपने किसी दोष के बिना, किसी अन्य कारण से इसे देने में असमर्थ है;

(ङ) आहर्ताओं को प्रभारित करने के लिए, जब प्रतिग्रहीता स्वयं भी एक आहर्ता हो;

(च) ऐसे वचन-पत्र की दशा में जो परक्राम्य नहीं है;

(छ) जब सूचना का हकदार पक्षकार, तथ्यों को जानते हुए, लिखत पर शोध्य राशि का संदाय करने का बिना शर्त वचन देता है।

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