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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Negotiable Instruments

Meera, a holder of a promissory note payable on demand, could not present it for payment on time because a sudden flood cut off her town for several days, through no fault of hers. Under the Negotiable Instruments Act, 1881, what is the legal position on the delay in presentment?

Delay is excused because the flood was beyond the holder's control and not due to her default or negligence. However, once the cause of delay ends, she must present the instrument within a reasonable time. The excuse is therefore conditional, not unlimited.

  1. AThe delay is excused because it was beyond her control, and once the cause ceases she must present within a reasonable timeCorrect
  2. BThe delay is excused permanently and she may present the instrument at any later date
  3. CThe delay is not excused because the Act allows no excuse for late presentment
  4. DThe delay is excused only if the maker gives written consent to the late presentment

Explanation

Section 75A excuses delay in presentment for acceptance or payment when it is caused by circumstances beyond the holder's control and not due to her default, misconduct or negligence. The excuse is not unlimited: when the cause ceases, presentment must be made within a reasonable time. The option allowing any later date ignores this limit.

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