(i) Kanika purchased various cosmetic products worth - 15,000 during the last week from Kartik, a shopkeeper, on credit of one month. After a…

(i) Section 20 of the Negotiable Instruments Act, 1881 reads as “Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in India, and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount. Provided that no person other than a holder in due course shall recover from the person delivering the instrument anything in excess of the amount intended by him to be paid thereunder”. In the instant case, Kanika is not liable to honour the promissory note to Manish for 17000. She is liable only for 15000. (ii) Presentment for payment [Section 64 of the Negotiable Instruments Act, 1881] As per section 64 of the Negotiable Instruments Act, 1881, promissory notes, bill of exchange and cheques must be presented for payment to the maker, acceptor or drawee thereof respectively, by or on behalf of the holder as hereinafter provided. In default of such presentment, the other parties thereto are not liable thereon to such holder. So, presentment for payment must be made to the person primarily liable on the instrument, or in their absence, at the proper place during the usual business hours. In this case, Nisha presented the bill at Neeraj’s office during regular business hours, but since Neeraj was not present, she left the bill with his assistant. While leaving the bill with the assistant might be considered a practical step, it does not fulfil the strict legal requirement of presenting the bill directly to the drawee (Neeraj) or his authorised representative for payment. Therefore, the presentation of the bill by Nisha to Neeraj’s assistant is not valid under law.