Bare Act Search Results

Negotiable Instruments Act, 1881 Complete Act

State: Central

Year: 1881

.....When the holder of an accepted bill of exchange enters into any contract with the acceptor which, under section 134 or 135 of the Indian Contract Act, 1872 (9 of 1872), would discharge the other parties, the holder may expressly reserve his right to charge the other parties, and in such case they are not discharged. SECTION 40: DISCHARGE OF INDORSER'S LIABILITY Where the holder of a negotiable instrument, without the consent of the indorser, destroys or impairs the indorser's remedy against a prior party, the indorser is discharged from liability to the holder to the same extent as if the instrument had been paid at maturity. Illustration A is the holder of a bill of exchange made payable to the order of B, which contains the following indorsements in blank- First indorsement, "B". Second indorsement, "Peter Williams". Third indorsement "Wright & Co." Fourth indorsement "John Rozario". This bill A puts in suit against John Rozario and strikes out, without John Rozario's consent, the indorsements by Peter Williams and Wright & Co. A is not entitled to recover anything from John Rozario. SECTION 41: ACCEPTOR BOUND, ALTHOUGH INDORSEMENT FORGED An acceptor of a bill of.....

Negotiable Instruments Act, 1881 Chapter IV

Title: Of Negotiation

State: Central

Year: 1881

.....party. Illustration The acceptor of a bill of exchange, when he accepted it, deposited with the drawer certain goods as a collateral security for the payment of the bill, with power to the drawer to sell the goods and apply the proceeds in discharge of the bill if it were not paid at maturity. The bill not having been paid at maturity, the drawer sold the goods and retained the proceeds, but indorsed the bill to A. A's title is subject to the same objection as the drawer's title. Section 60 - Instrument negotiable till payment or satisfaction A negotiable instrument may be negotiated (except by the maker, drawee or acceptor after maturity) until payment or satisfaction thereof by the maker, drawee or acceptor at or after maturity, but not after such payment or satisfaction.

Negotiable Instruments Act, 1881 Chapter V

Title: Of Presentment

State: Central

Year: 1881

.....so demanded bythe drawee bank shall be retained by it, ifthe payment is made accordingly.] ____________________ 1. Section 64 renumbered assub-section (1) thereof by Act 55 of 2002, sec. 3 (w.e.f. 6-2-2003). 2. Insertedby Act 2 of 1885, sec. 4. 3. Insertedby Act 55 of 2002, sec, 3 (w.e.f. 6-2-2003). Section 65 - Hours for presentment Presentment for payment must be made during the usual hours of business and, if at a banker's, within banking hours. Section 66 - Presentment for payment of instrument payable after date or sight A promissory note or bill of exchange, made payable at a specified period after date or sight thereof, must be presented for payment at maturity. Section 67 - Presentment for payment of promissory note payable by instalments A promissory note payable by instalments must be presented for payment on the third day after the date fixed for payment of each instalment; and nonpayment on such presentment has the same effect as non-payment of a note at maturity. Section 68 - Presentment for payment of instrument payable at specified place and not elsewhere A promissory note, bill of exchange or cheque made, drawn or accepted payable at.....

Negotiable Instruments Act, 1881 Section 37

Title: Maker, Drawer and Acceptor Principals

State: Central

Year: 1881

The maker of a promissory note or cheque, the drawer of a bill of exchange until acceptance, and the acceptor are, in the absence of a contract to the contrary, respectively liable thereon as principal debtors, and the other parties thereto are liable thereon as sureties for the maker, drawer or acceptor, as the case may be.

Negotiable Instruments Act, 1881 Section 51

Title: Who May Negotiate

State: Central

Year: 1881

Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same. Explanation.--Nothing in this section enables a maker or drawer to indorse or negotiate an instrument, unless he is in lawful possession or is holder thereof; or enables a payee or indorsee to indorse or negotiate an instrument, unless he is holder thereof. Illustration A bill is drawn payable to A or order. A indorses it to B, the indorsement not containing the words "or order" or any equivalent words. B may negotiate the instrument.

Negotiable Instruments Act, 1881 Section 7

Title: "drawer", "drawee"

State: Central

Year: 1881

The maker of a bill of exchange or cheque is called the"drawer"; the person thereby directed to pay is called the"drawee". "drawee in case of need".--When in thebill or in any indorsement thereon the name of any person is given in additionto the drawee to be resorted to in case of need such personis called a "drawee in case of need". "acceptor".--After thedrawee of abill has signed his assent upon the bill, or, if there are more partsthereof than one, upon one of such parts, and delivered the same, or givennotice of such signing to the holder or to some person onhis behalf,he is called the "acceptor". "acceptor for honour".--1 [When a bill of exchangehas been noted or protested for non-acceptance or for better security], ana anyperson accepts it supra protest forhonour of the drawer or of any one of the indorsers, such person iscalled an "acceptor for honour". "Payee".--The person named in theinstrument, to whom or to whose order the money is by theinstrument directed to be paid, is called the "payee". _____________________ 1.Substituted by Act 2 of 1885, sec. 2, for "Whenacceptance is refused and the bill is protested for non-acceptance".

Negotiable Instruments Act, 1881 Section 134

Title: Law Governing Liability of Maker, Acceptor or Indorser of Foreign Instrument

State: Central

Year: 1881

In the absence of a contract to the contrary, the liability of the maker of dr awer of a foreign promissory note, bill of exchange or cheque is regulated in all essential matters by the law of the place where he made the instrument, and the respective liabilities of the acceptor and indorser by the law of the place where the instrument is made payable. Illustration A bill of exchange was drawn by A in California where the rate of interest is 25 per cent, and accepted by B, payable in Washington where the rate of interest is 6 per cent. The bill is indorsed in '[India], and is dishonoured. An action on the bill is brought against B in1[India]. He is liable to pay interest at the rate of 6 per cent, only; but if A is charged as drawer, A is liable to pay interest at the rate of 25 per cent. ___________________ 1. Substituted by Act 3 of 1951, sec. 3 and Sch., for "the States".

Negotiable Instruments Act, 1881 Section 69

Title: Instrument Payable at Specified Place

State: Central

Year: 1881

A promissory note or bill of exchange made, drawn or accepted payable at a specified place must, in order to charge the maker or drawer thereof, be presented for payment at the place.

Negotiable Instruments Act, 1881 Section 30

Title: Liability of Drawer

State: Central

Year: 1881

The drawer of a bill of exchange or cheque is bound in case of dishonour by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided.

Negotiable Instruments Act, 1881 Section 84

Title: When Cheque Not Duly Presented and Drawer Damaged Thereby

State: Central

Year: 1881

.....of the banker to a large amount than he would have been if such cheque had been paid. ( 2 ) In determining what is a reasonable time, regard sh all be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case. ( 3 ) The holder of the cheque as to which such dr awer or person is so discharged sh all be a creditor, in lieu of such dr awer or person, of such banker to the extent of such discharge and entitled to recover the amount from hi m. Illustrations (a) A draws a cheque for Rs. 1, 000, and, when the cheque ought to be presented, has funds at the bank to meet it. The bank fails before the cheque is presented. The drawer is discharged, but the holder can prove against the bank for the amount of the cheque. (b) A draws a cheque at Ambala on a bank in Calcutta. The bank fails before the cheque could be presented in ordinary course. A is not discharged, for he has not suffered actual damage through any delay in presenting the cheque.] _____________________ 1. Substituted by Act 6 of 1897, sec. 3, for section 84.