धारा 58

Section 58 of the Negotiable Instruments Act, 1881, deals with the dishonor of a negotiable instrument by non-payment. The section states that 'a promissory note, bill of exchange or cheque is said to be dishonored by non-payment when the drawee or the acceptor makes default in payment thereof.' The section further explains that the dishonor by non-payment will make the parties to the instrument liable to pay the amount. The section also provides that the holder can recover the amount of the instrument from the parties liable. The Supreme Court of India has held that the dishonor of a cheque by non-payment makes the drawer liable to pay the amount (State Bank of India v. M. S. Chacko, AIR 1990 SC 1918).