Q.Under Section 22 of the Negotiable Instruments Act, 1881, the number of days of grace allowed, in addition to the fixed period, when calculating the maturity date of a promissory note or bill of exchange payable at a fixed period after date is:

Section 22 fixes a specific number of extra calendar days added to the stated period before a fixed-period instrument's true maturity date is reached, and this figure is a settled statutory number, not a matter of banking discretion. …

Section 22 of the Negotiable Instruments Act, 1881 provides that three days of grace are allowed, in addition to the time fixed on the instrument itself, when calculating the maturity date of a promissory note or bill of exchange that is payable at a fixed period after date, after sight, or after the happening of a specified event. So, if a bill is expressed to be payable, say, two months after date, its true, legally enforceable maturity date is the calendar date two months later PLUS three more days — never two days, never five days, and never zero days for this class of instrument. It is worth remembering, however, that t …

A very common mistake is applying the three days of grace rule to a cheque as well — cheques are payable on demand and get no days of grace at all. Another mistake is misremembering the numb …