धारा 16

The notice of dishonour must be given in writing and must specify the fact of dishonour and the amount of the bill. As per Section 16 of the Negotiable Instruments Act, 1881, 'The notice of dishonour may be given to the drawer or endorser, either personally or by registered post, or by telegram, or by letter sent by post, or by message, or by electronic means, and such notice shall be deemed to have been given on the day on which it is delivered, or on which it is posted, or on which it is sent, as the case may be.' The notice of dishonour must be given within a reasonable time and the holder must prove that the drawer and the endorsers have been prejudiced by the delay. The Supreme Court in the case of State Bank of India vs. M. K. Bhargava (2005) has held that the notice of dishonour must be given in a manner that is reasonable and that the holder must prove that the drawer and the endorsers have been prejudiced by the delay.