The correct answer is: Section 91.
Section 91 of the Negotiable Instruments Act, 1882 deals with the ‘Dishonour of Negotiable Instrument by Non-Payment’. It states that a negotiable instrument is dishonoured by non-payment when the party to whom it is presented for payment refuses to pay it. The instrument is also dishonoured if the party to whom it is presented for payment is unable to pay it.
Section 91 also states that the holder of a dishonoured negotiable instrument has the right to sue the drawer, the acceptor, and all the indorsers of the instrument. The holder can also sue the maker of a promissory note that has been dishonoured.
Section 91 is an important provision of the Negotiable Instruments Act, 1882. It protects the rights of the holder of a negotiable instrument and ensures that the party who is liable for payment of the instrument is held accountable.
The other options are incorrect because they do not deal with the ‘Dishonour of Negotiable Instrument by Non-Payment’.
- Section 90 deals with the ‘Acceptance of a Negotiable Instrument’.
- Section 92 deals with the ‘Presentment of a Negotiable Instrument for Payment’.
- Section 93 deals with the ‘Notice of Dishonour of a Negotiable Instrument’.