Section 18 of NIA : Section 18: Where Amount Is Stated Differently In Figures And Words

NIA

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Explanation using Example

Imagine that Alice writes a check to Bob for his freelance work. In the space for the amount, she writes the numbers "$1,500" but in the words, she accidentally writes "One Thousand Two Hundred Dollars." Bob goes to the bank to deposit the check. According to Section 18 of The Negotiable Instruments Act, 1881, the bank should honor the amount written in words. Therefore, Bob will only receive $1,200 from the deposit, not $1,500, because the legal act prioritizes the amount stated in words over the figures.

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