When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a Notary Public upon the instrument, or upon an paper attached thereto, or partly upon each.
Thus, noting is recording of the presentment of the instrument for acceptance or for payment and its dishonour by non-acceptance or non-payment. It is done by a person (e.g., a Magistrate) officially designated for this purpose and it serves as the authentic and legal proof of presentment and dishonour. While noting, the Notary Public records the date of dishonour, the reason assigned for such dishonour and the Notary’s charges. Noting must be done within a reasonable time after dishonour.
Advantage of noting: Noting is useful as legal evidence and has the following advantages:
1) If nothing is done within a reasonable time, protest if required in an instrument may be drawn later on (Sec. 104-A).
2) A bill of exchange can be accepted for honour even after noting, though no protest is drawn up (Sec. 108).
3) A bill of exchange may be paid for honour after noting and the payer need not wait for protest (Sec. 113).
4) A Notary, being a person conversant in such transactions, is qualified to direct the holder to pursue the proper conduct in presenting the bill, and may, upon a trial, be a useful witness of the presentment and dishonour.
5) By the noting, the presentment and dishonour of the bill can be traced easily at any time by reference to the register or protest book reserved in the Notary Office. Another advantage in noting is that a copy can, at any time, be obtained from the Notary Office, if the original is lost.
