Section 104 of NIA : Section 104: Protest Of Foreign Bills

Explanation using Example

Imagine an Indian exporter, Sunita, who sells goods to a buyer in France, Pierre. Sunita draws a bill of exchange on Pierre, which means Pierre must pay a certain amount by a specified date. The bill is governed by French law because it is drawn there. If Pierre fails to pay on the due date, under Section 104 of The Negotiable Instruments Act, 1881, Sunita must have the bill formally protested by a notary in France to claim that it has been dishonoured. This protest is a legal requirement in France and serves as evidence in any subsequent legal proceedings for payment.