Section 79 in The Negotiable Instruments Act
Title: Interest when rate specified
When interest at a specified rate is expressly made payable on a promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the principal money due thereon, from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs
Title: Interest when no rate specified
When no rate of interest is specified in the instrument, interest on the amount due thereon shall, 1[notwithstanding any agreement relating to interest between any parties to the instrument], be calculated at the rate of 2[eighteen per centum] per annum, from the date at which the same ought to have been paid by the party charged, until tender or realization of the amount due thereon, or until such date after the institution of a suit to recover such a mount as the Court directs.
Explanation.-- When the party charged is the indorser of an instrument dishonoured by non-payment he is liable to pay interest only from the time that he receives notice of the dishonour.
1. Subs. by Act 30 of 1926, s. 2, for except in cases provided for by the Code of Civil Procedure, s. 532.
2. Subs. by Act 66 of 1988, s. 2, for six per centum (w.e.f. 30-12-1988).
Title: Delivery of instrument on payment or indemnity in case of loss
1[(1)] Any person liable to pay, and called upon by the holder thereof to pay, the amount due on a promissory note, bill of exchange or cheque is before payment entitled to have it shown, and is on payment entitled to have it delivered up, to him, or if the instrument is lost or cannot be produced, to be indemnified against any further claim thereon against him.
2[(2) Where the cheque is an electronic image of a truncated cheque, even after the payment the banker. who received the payment shall be entitled to retain the truncated cheque.
(3) A certificate issued on the foot of the printout of the electronic image of a truncated cheque by the banker who paid the instrument, shall be prima facie proof of such payment.]
1. Section 81 re-numbered as sub-section (1) thereof by Act 55 of 2002, s. 4 (w.e.f. 6-2-2003).
2. Ins. by s. 4, ibid. (w.e.f. 6-2-2003).
Title: Discharge from liability
The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon--
(a) by cancellation.-- to a holder thereof who cancels such acceptor's or indorser's name with intent to discharge him, and to all parties claiming under such holder;
(b) by release.-- to a holder thereof who otherwise discharges such maker, acceptor or indorser, and to all parties deriving title under such holder after notice of such discharge;
(c) by payment.-- to all parites thereto, if the instrument is payable to bearer, or has been indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount due thereon.
Title: Discharge by allowing drawee more than fortyeight hours to accept
If the holder of a bill of exchange allows the drawee more than 1[forty-eight] hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharge from liability to such holder.
1. Subs. by Act 12 of 1921, s. 2, for twenty-four.