A bill of exchange is a negotiable financial instrument used in commerce. When a bill is dishonoured (i.e., not paid or accepted), a party may have it noted by a notary public to preserve legal rights for claims, damages, or protest. Noting is a formal act done before the bill is protested.
When Does a Bill is Noted from the Notary Public?
A bill is noted by a Notary Public after dishonour and before protest usually on the same day or next business day when you receive formal notice of dishonour.
The holder presents the bill to the drawee/acceptor to pay or accept on the due date. If the drawee/acceptor refuses payment or acceptance, the bill is considered dishonoured.
The holder then presents the dishonoured bill to a Notary Public for notation. The notary records the fact of dishonour in official notarial records. This notation creates formal evidence of dishonour. It must be done within legal timelines (typically the same or next day after dishonour) to maintain rights.
After notation, the bill may be protested by a formal notarial certificate demanding payment especially when suing guarantors, endorsers, or for legal claims.
Noting is considered important because,
Evidence of Dishonour: A notary’s notation is strong legal proof that the bill was dishonoured.
Preserves Legal Rights: It allows the holder to take legal action against drawer, endorsers, and acceptors.
Needed for Damage Claims: Courts often require notation or protest when damages are claimed under the Negotiable Instruments Act.
I hope this helps!
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When the Bill is Noted from the Notary Public?
priya
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2026-02-18T06:47:54+00:00 2026-02-18T06:47:57+00:00Comment
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