Negotiable Instruments Act, 1881 · Chapter VIII: Of Notice of Dishonour
Section 98: When notice of dishonour is unnecessary
In plain words
No notice of dishonour is needed in certain cases.
- When the party entitled to it waives it, or, to charge the drawer, when the drawer has stopped payment.
- When the party could not be harmed by the lack of notice, cannot be found after due search, or notice cannot be given without fault.
- To charge the drawers when the acceptor is also a drawer, or for a promissory note that is not negotiable.
- When the party, knowing the facts, unconditionally promises to pay.
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
No notice of dishonour is necessary—
(a) when it is dispensed with by the party entitled thereto;
(b) in order to charge the drawer, when he has countermanded payment;
(c) when the party charged could not suffer damage for want of notice;
(d) when the party entitled to notice cannot after due search be found; or the party bound to give notice is, for any other reason, unable without any fault of his own to give it;
(e) to charge the drawers, when the acceptor is also a drawer;
(f) in the case of a promissory note which is not negotiable;
(g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.
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 98
No Supreme Court judgment in our database cites this section yet.