Negotiable Instruments Act, 1881 · Chapter VII: Of Discharge From Liability on Notes, Bills and Cheques
Section 86: Parties not consenting discharged by qualified or limited acceptance
In plain words
If the holder agrees to a qualified acceptance, all earlier parties who did not consent are discharged towards the holder and those claiming under them, unless they agree after notice.
- An acceptance is qualified if it is conditional, covers only part of the sum, changes the place of payment to a specific place only, or changes the time of payment.
- Where drawees are not partners, an acceptance not signed by all of them also counts.
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 of a bill of exchange acquiesces in a qualified acceptance, or one limited to part of the sum mentioned in the bill, or which substitutes a different place or time for payment, or which, where the drawees are not partners, is not signed by all the drawees, all previous parties whose consent is not obtained to such acceptance are discharged as against the holder and those claiming under him, unless on notice given by the holder they assent to such acceptance.
Explanation.— An acceptance is qualified—
(a) where it is conditional, declaring the payment to be dependent on the happening of an event therein stated;
(b) where it undertakes the payment of part only of the sum ordered to be paid;
(c) where no place of payment being specified on the order, it undertakes the payment at a specified place, and not otherwise or elsewhere; or where, a place of payment being specified in the order, it undertakes the payment at some other place and not otherwise or elsewhere;
(d) where it undertakes the payment at a time other than that at which under the order it would be legally due.
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 86
No Supreme Court judgment in our database cites this section yet.