Dishonour of bill : Sometimes the acceptor of the bill is not in a position to pay the money of the bill or not willing to make the payment of the bill, then it is known as dishonour of a bill. Because of the money crisis, insolvency of the acceptor or because of the non-arrangement of money or because of the other reasons if the payment of the bill is not made by the acceptor of the bill then also it is known as dishonour of the bill and it should be informed in time to the concern parties by the holder of the bill.

Procedure for entry of a dishonoured bill: When the bill is dishonoured, the holder of the bill goes to the notary for the noting of an entry of such dishonoured bill. Such noting is not compulsory by law but it is advisable. When dishonoured bill is presented to this officer, he presents the bill again to the acceptor of the bill.

Now if the acceptor of the bill is not in a position to pay the money or money is not paid by him then notary record the entry of dishonour of a bill in his record books, and issues a certificate for noting of dishonour bill to the holder of the bill.

For making this entry the fees charged by the officer is called noting charges. The expense of noting charges is at the first instance paid by the holder of the bill and in due course he can collect the amount from the acceptor of the bill because the final legal responsibility for paying the noting charges is that of the acceptor of the bill.