Bill of Exchange. Defined in the (English) Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), s. 3, as an 'unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.'
It is a chose in action, but, for the encouragement of commerce, it is assignable, at Common Law, by mere endorsement, so that very many names are frequently attached to one bill as endorsers, and each of them is liable to be sued upon the bill, if it be not paid in due time. the person who makes or draws the bill is called the drawer, he to whom it is addressed is, before acceptance, the drawee, and after accepting it, the acceptor; the person in whose favour it is drawn is the payee; if he endorse the bill to another, he is called the endorser, and the person to whom it is thus assigned or negotiated is the endorsee or holder, and so on ad infinitum. A payee is not a holder in due course, Jones v. Waring, 1926 AC 670. The earliest recorded bills of exchange, according to Beckmann (Hist. Invent. iii. 430), are mentioned by the jurist Baldus, and bear date A.D. 1328. But they were by no means in common use till the next century. However, they are said to have been in use among the Florentines in the twelfth, and the Venetians in the thirteenth century. In 3 Rich. 2, c. 3, they are referred to as a means of conveying money out of the realm though not as a process in use among English merchants. The earliest English case on the subject is Martin v. Boure, (1603-04) Cro. Jac. 6. (See the judgment of Lord Cockburn, C.J., in Goodwin v. Robarts, (1855) L.R. 10 Ex. 337 (346).)
The whole law of bills of exchange, except so far as relates to stamps and other small matters, is 'codified' by the Bills of Exchange Act, 1882, abovementioned, which, except s. 53, providing that a bill is not an assignment of funds in the hands of the drawee, assismilates the law of England and Scotland, but makes comparatively little alteration in the law of either country.
The remedy to recover on bills of exchange and promissory notes was much simplified and shortened by the (English) Summary Procedure on Bills of Exchange Act, 1855 (18 & 19 Vict. c. 67), the procedure under which was continued by (English) Jud. Act, 1875, Ord. II., r. 6, but abandoned afterwards by on of the rules of April, 1880. See now (English) R. S. C. Ord. III., r. 6, and Ord. XIV.
See also BANKER'S DRAFT; CHEQUE; NEGOTIABLE INSTRUMENTS; PROMISSORY NOTES PROTEST; NOTE A BILL, TO; INCHOATE.
Includes a hundi and a cheque. [The Limitation Act, 1963 (36 of 1963), s. 2 (c)]
Means a bill of exchange as defined by the Negotiable Instruments Act, 1881 and includes also a hundi and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money. [Indian Stamp Act, 1899 (2 of 1899), s. 2 (2)]
A bill of exchange is an instrument in writing containing an unconditional order directing a certain person to pay a certain sum of money to a certain person. It involves a promise that such money would be paid, National Insurance Co Ltd. v. Seema Malhotra, AIR 2001 SC 1197 (1200): (2001) 3 SCC 151.
Bill of exchange, is either an inland or a foreign bill. An inland bill is a bill which is, or upon the face of it purports to be, (1) both drawn any payable within the British Islands or (2) drawn within the British Islands upon some person residents therein. Any other bill is a foreign bill, Halsbury's Laws of England, Vol. 4(1), 4th Edn., Para 333, p. 170.
Bill of exchange, is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, to bearer, Halsbury's Laws of England, Vol. 4(1), 4th Edn., Para 307, p. 155.
Bill of exchange, includes a hundi or a cheque, Limitation Act, 1963, sec. 2(c).
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