Negotiable Instruments Act, 1881 · Chapter IV: Of Negotiation · O f p r e s e n t m e n t
Section 77: Liability of banker for negligently dealing with bill presented for payment
In plain words
If a bill accepted as payable at a specified bank is duly presented there and dishonoured, and the bank negligently or improperly keeps, handles or returns it so as to cause the holder loss, the bank must compensate the holder.
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
When a bill of exchange, accepted payable at a specified bank, has been duly presented there for payment and dishonoured, if the banker so negligently or improperly keeps, deals with or delivers back such bill as to cause loss to the holder, he must compensate the holder for such loss.
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 77
No Supreme Court judgment in our database cites this section yet.