Section 64 of NIA : Section 64: Presentment For Payment

Explanation using Example

Imagine John issues a cheque to Mary as payment for her services. According to Section 64(1) of The Negotiable Instruments Act, 1881, Mary must present this cheque to the bank (the drawee) for payment. If Mary fails to present the cheque, the bank is not liable to pay her. However, if there's an agreement or common practice between them, Mary can send the cheque via registered mail to the bank for payment.

In another scenario, under Section 64(2), suppose the cheque John gave to Mary was truncated (converted into an electronic image) and sent to her bank for collection. If John's bank (the drawee bank) suspects any fraud or tampering with the electronic image of the cheque, it has the right to ask Mary's bank for more details or even to see the original truncated cheque before making the payment.