Negotiable Instruments Act, 1881 · Chapter X: O F R E A S O N A B L E T I M E
Section 106: Reasonable time of giving notice of dishonour
In plain words
If the parties are in different places, notice of dishonour is in reasonable time if sent by the next post or on the day after dishonour. If they are in the same place, it must be sent in time to arrive on the day after dishonour.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
If the holder and the party to whom notice of dishonour is given carry on business or live (as the case may be) in different places, such notice is given within a reasonable time if it is dispatched by the next post or on the day next after the day of dishonour.
If the said parties carry on business or live in the same place, such notice is given within a reasonable time if it is dispatched in time to reach its destination on the day next after the day of dishonour.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 106
No Supreme Court judgment in our database cites this section yet.