धारा 15

When a bill of exchange is dishonoured by non-acceptance or non-payment, the holder must give notice of such dishonour to the drawer and the endorsers within a reasonable time. As per Section 15 of the Negotiable Instruments Act, 1881, 'When a bill of exchange is dishonoured by non-acceptance or non-payment, and the holder of the bill, or some party through whom he claims, has been inattentive to his duty, in giving notice of the dishonour to the drawer and the endorsers, the bill shall not be deemed to be dishonoured by such non-acceptance or non-payment, unless it is proved that the drawer or the endorser has been prejudiced by such inattention.' The notice of dishonour must be given in writing and must specify the fact of dishonour and the amount of the bill. The Bombay High Court in the case of Bank of Baroda vs. M. S. Shah (1985) has held that the notice of dishonour must be given within a reasonable time and that the holder must prove that the drawer and the endorsers have been prejudiced by the delay.