धारा 55

This section deals with the acceptance and payment of a negotiable instrument and the payment of interest. According to Section 55 of the Negotiable Instruments Act, 1881, 'when a promissory note, bill of exchange or cheque is dishonored by non-acceptance or non-payment, the holder may recover from the drawer or from the acceptor, and from the endorser (if any) the amount of the instrument, with interest and costs of noting and protesting.' The section further explains that the interest will be calculated from the date of the instrument to the date of payment or to the date of institution of the suit. The section also provides that the holder can recover the costs of noting and protesting the instrument. The Madras High Court has held that the holder of a dishonored cheque can recover the amount of the cheque with interest and costs (Canara Bank v. S. R. S. Engineering, AIR 1992 Mad 135).