The Negotiable Instruments Act, 1881
C H A P T E R V: OF PRESENTMENT
Section 61: Presentment For Acceptance
Bare Act
A bill of exchange payable after sight must, if no time or place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable search, be found, by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.
If the drawee cannot, after reasonable search, be found, the bill is dishonoured. If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the bill is dishonoured.
Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.
Simplified Act
When you have a bill that you need to be paid later on (after the person you gave it to has seen it), you should show it to the person who needs to pay (the drawee) so they can agree to pay it. This should be done without specifying a time or place on the bill itself. You need to find the person who has to pay, which might take a bit of looking, and show them the bill soon after you make it. Also, make sure to do this during normal business hours on a day when businesses are open. If you don't show the bill to them, then you can't expect anyone to be responsible for paying you.
If you can't find the person who is supposed to pay the bill, even after a good search, then the bill is considered to be refused. If the bill says it should be shown to the person at a specific place, then you must go to that place to show it. If the person isn't there and can't be found after a good search, the bill is again considered to be refused.
If it's okay based on an agreement or it's a common practice, you can also send the bill by registered mail through the post office to ask for payment.
Explanation using examples
Imagine Jane issues a bill of exchange to Bob, which is payable 30 days after Bob has seen it (after sight). The bill does not specify where it should be presented. Jane needs to ensure that within a reasonable time after issuing the bill, she presents it to Bob for acceptance during normal business hours. If Jane fails to do so, and the bill's payment date arrives, she cannot hold Bob liable for non-payment because she didn't present the bill properly.
If Jane tries to find Bob to present the bill for acceptance but cannot find him after a thorough search, the bill is considered dishonoured because Bob was not available to accept it. If the bill had stated that it should be presented at Bob's office, and Jane went there but couldn't find Bob, the bill would again be dishonoured.
In some cases, Jane and Bob might have agreed that she can present the bill for acceptance via registered mail. If they've agreed to this or it's a common practice in their industry, then Jane can mail the bill to Bob, and it will be considered properly presented.
