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Negotiable Instruments Act, 1881 Section 50

Title: Effect of Indorsement

State: Central

Year: 1881

The indorsement of a negotiable instrument followed by delivery transfers to the indorsee the property therein with the right of further negotiation; but the indorsement may, by express words, restrict or exclude such right, or may merely constitute the indorsee an agent to indorse the instrument, or to receive its contents for the indorser, or for some other specified person. Illustrations B signs the following indorsements on different negotiable instruments payable to bearer:-- (a) "Pay the contents to C only." (b) "Pay C for my use." (c) "Pay C or order for the account of B." (d) "The within must be credited to C." These indorsements exclude the right of further negotiation by C. (e) "Pay C." (f) "Pay C value in account with the Oriental Bank." (g) "Pay the contents to C, being part of the consideration in a certain deed of assignment executed by C to the indorser and others." These indorsements do not exclude the right of further negotiation by C.

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Negotiable Instruments Act, 1881 Section 100

Title: Protest

State: Central

Year: 1881

When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary public. Such certificate is called a protest. Protest for better security.--When the acceptor of a bill of exchange has become insolvent, or his credit has been publicly impeached, before the maturity of the bill, the holder may, within a reasonable time, cause a notary public to demand better security of the acceptor, and on its being refused may, with a reasonable time, cause such facts to be noted and certified as aforesaid. Such certificate is called a protest for better security.

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Negotiable Instruments Act, 1881 Section 114

Title: Right of Payer for Honour

State: Central

Year: 1881

Any person so paying is entitled to all the rights in respect of the bill, of the holder at the time of such payment, and may recover from the party for whose honour he pays all sums so paid, with interest thereon and with all expenses properly incurred in making such payment.

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Negotiable Instruments Act, 1881 Section 112

Title: When Acceptor for Honour May Be Charged

State: Central

Year: 1881

An acceptor for honour cannot be charged unless the bill has at its maturity been presented to the drawee for payment, and has been dishonoured by him, and noted or protested for such dishonour.

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Negotiable Instruments Act, 1881 Section 111

Title: Liability of Acceptor for Honour

State: Central

Year: 1881

An acceptor for honour binds himself to all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee do not; and such party and all prior parties are liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him in consequence of such acceptance. But an acceptor for honour is not liable to the holder of the bill unless it is presented, or (in case the address given by such acceptor on the bill is a place other than the place where the bill is made payable) forwarded for presentment, not later than the day next after the day of its maturity.

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Negotiable Instruments Act, 1881 Section 110

Title: Acceptance Not Specifying for Whose Honour It is Made

State: Central

Year: 1881

Where the acceptance does not express for whose honour it is made it shall be deemed to be made for the honour of the drawer.

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Negotiable Instruments Act, 1881 Section 107

Title: Reasonable Time for Transmitting Such Notice

State: Central

Year: 1881

A party receiving notice of dishonour, who seeks to enforce his right against a prior party, transmits the notice within a reasonable time if he transmits it within the same time after its receipt as he would have had to give notice if he had been the holder.

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Negotiable Instruments Act, 1881 Section 106

Title: Reasonable Time of Giving Notice of Dishonour

State: Central

Year: 1881

If the holder and the party to whom notice of dishonour is given carry on business or live (as the case may be) in different places, such notice is given within a reasonable time if it is despatched by the next post or on the day next after the day of dishonour. If the said parties carry on business or live in the same place, such notice is given within a reasonable time if it is despatched in time to reach its destination on the day next after the day of dishonour.

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Negotiable Instruments Act, 1881 Section 105

Title: Reasonable Time

State: Central

Year: 1881

In determining what is a reasonable time for presentment for acceptance or payment, for giving notice of dishonour and for noting, regard shall be had to the nature of the instrument and the usual course of dealing with respect to similar instruments; and, in calculating such time, public holidays shall be excluded.

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Negotiable Instruments Act, 1881 Section 104

Title: Protest of Foreign Bills

State: Central

Year: 1881

Foreign bills of exchange must be protested for dishonour when such protest is required by the law of the place where they are drawn.

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