Bills of Exchange

(11) Where there are two or more drawers or indorsers who
are not partners, notice must be given to each of them,
unless one of them has authority to receive such notice
for the others.

(12) The notice may be given as soon as the bill is dishonoured,
and must be given within a reasonable time thereafter.
In the absence of special circumstances notice is not deemed to
have been given within a reasonable time unless-
(a) Where the person giving and the person to receive notice

reside in the same place, the notice is given or sent off

in time to reach the latter on the day after the dis-
honour of the bill.

(b) Where the person giving and the person to receive notice
reside in different places the notice is sent off on the
day after the dishonour of the bill, if there be a post
at a convenient hour on that day, and if there be no
such post on that day then by the next post thereafter.
(13) Where a bill when dishonoured is in the hands of an
agent, he may either himself give notice to the parties.
liable on the bill, or he may give notice to his principal.
If he give notice to his principal he must do so within
the same time as if he were the holder, and the principal,
upon receipt of such notice, has himself the same time
for giving notice as if the agent had been an independent
holder.

(14) Where a party to a bill receives due notice of dishonour,
he has after the receipt of such notice the same period
of time for giving notice to antecedent parties that the
holder has after the dishonour.

(15) Where a notice of dishonour is duly addressed and posted
the sender is deemed to have given due notice of dis-
honour, notwithstanding any miscarriage by the post
office.

51. (1) Delay in giving notice of dishonour is excused where the Excuses for nondelay is caused by circumstances beyond the control of the party giving notice and delay notice, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate the notice must be given

with reasonable diligence.

(2) Notice of dishonour is dispensed with

VOL. II.

(a) When, after the exercise of reasonable diligence, notice
as required by this Act cannot be given to, or does not
reach, the drawer or indorser sought to be charged;
(b) By waiver express or implied. Notice of dishonour
may be waived before the time of giving notice has
arrived, or after the omission to give due notice;
(c) As regards the drawer in the following cases, namely,-
(1) where drawer and drawee are the same person,
(2) where the drawee is a fictitious person or a person
not having capacity to contract,

F

Noting or protest of bill

Bills of Exchange

(3) where the drawer is the person to whom the bill is presented for payment,

(4) where the drawee or acceptor is as between himself and the drawer under no obligation to accept or

pay the bill, or

(5) where the drawer has countermanded payment; (d) As regards the indorser in the following cases, namely,(1) where the drawee is a fictitious person or a person not having capacity to contract and the indorser was aware of the fact at the time he indorsed the bill, (2) where the indorser is the person to whom the bill is presented for payment,

(8) where the bill was accepted or made for his accom

modation.

52. (1) Where an inland bill has been dishonoured it may, if the holder think fit, be noted for non-acceptance or non-payment, as the case may be; but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or indorser.

(2) Where a foreign bill appearing on the face of it to be such has been dishonoured by non-acceptance, it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonoured by non-acceptance, is dishonoured by non-payment, it must be duly protested for non-payment. If it be not so protested the drawer and indorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonour is unnecessary.

(8) A bill which has been protested for non-acceptance may be subsequently protested for non-payment.

(4) Subject to the provisions of this Act, when a bill is noted or protested it must be noted on the day of its dishonour. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.

(5) Where the acceptor of a bill becomes insolvent or suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and indorsers.

(6) A bill must be protested at the place where it is dishonoured; Provided that

(a) When a bill is presented through the post office, and returned by post dishonoured, it may be protested at the place to which it is returned and on the day of its return, if received during business hours; and if not received during business hours, then not later than the next business day.

(b) When a bill, drawn payable at the place of business or residence of some person other than the drawee, has been dishonoured by non-acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment for payment to or demand on the drawee is necessary.

Bills of Exchange

(7) A protest must contain a copy of the bill, and must be signed by the notary making it, and must specify—

(a) The person at whose request the bill is protested :
(b) The place and date of protest, the cause or reason for
protesting the bill, the demand made, and the answer

given, if any, or the fact that the drawee or acceptor
could not be found.

(8) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.

(9) Protest is dispensed with by any circumstance which would dispense with notice of dishonour. Delay in noting or protesting is excused when the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate the bill must be noted or protested with reasonable diligence.

53. (1) When a bill is accepted generally, presentment for payment is not necessary in order to render the acceptor liable.

(2) When by the terms of a qualified acceptance presentment for payment is required, the acceptor, in the absence of an express stipulation to that effect, is not discharged by the omission to present the bill for payment on the day that it matures.

(3) In order to render the acceptor of a bill liable it is not necessary to protest it, or that notice of dishonour should be given to him.

(4) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it.

LIABILITIES OF PARTIES

Duties of holde

as regards drawee or ac

ceptor

54. A bill of itself does not operate as an assignment of funds in Funds in hand of the hands of the drawee available for the payment thereof, and the drawee drawee of a bill who does not accept as required by this Act is not

liable on the instrument.

55. The acceptor of a bill, by accepting it—

(1) Engages that he will pay it according to the tenor of his
acceptance.

(2) Is precluded from denying to a holder in due course-
(a) The existence of the drawer, the genuineness of his
signature, and his capacity and authority to draw
the bill.

(b) In the case of a bill payable to drawer's order, the then
capacity of the drawer to indorse, but not the genuine-
ness or validity of his indorsement.

(c) In the case of a bill payable to the order of a third person,
the existence of the payee and his then capacity to
indorse, but not the genuineness or validity of his
indorsement.

Liability of acceptor

Bills of Exchange

Liability of drawer or in. dorser

Stranger signing bill liable as indorser

Measure of

damages against parties to dishonoured bill

56. (1) The drawer of a bill by drawing it—

(a) Engages that on due presentment it shall be accepted
and paid according to its tenor, and that if it be dis-
honoured he will compensate the holder or any in-
dorser who is compelled to pay it, provided that the
requisite proceedings on dishonour be duly taken.
(b) Is precluded from denying to a holder in due course
the existence of the payee and his then capacity to
indorse.

(2) The indorser of a bill by indorsing it—

(a) Engages that on due presentment it shall be accepted and
paid according to its tenor, and that if it be dishonoured
he will compensate the holder or a subsequent indorser
who is compelled to pay it, provided that the requisite
proceedings on dishonour be duly taken.

(b) Is precluded from denying to a holder in due course the
genuineness and regularity in all respects of the
drawer's signature and all previous indorsements.
(c) Is precluded from denying to his immediate or a sub-
sequent indorsee that the bill was, at the time of his
indorsement, a valid and subsisting bill, and that he
had then a good title thereto.

57. Where a person signs a bill otherwise than as drawer or acceptor, he thereby incurs the liabilities of an indorser to a holder in due course.

58. Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows:

(1) The holder may recover from any party liable on the bill,
and the drawer who has been compelled to pay the
bill may recover from the acceptor, and an indorser who
has been compelled to pay the bill may recover from the
acceptor or from the drawer, or from a prior indorser-
(a) The amount of the bill:

(b) Interest thereon from the time of presentment for pay-
ment if the bill is payable on demand, and from the
maturity of the bill in any other case:

(c) The expenses of noting, or, when protest is necessary, and the protest has been extended, the expenses of protest. (2) In the case of a bill which has been dishonoured abroad, in lieu of the above damages the holder may recover from the drawer or an indorser, and the drawer or an indorser who has been compelled to pay the bill may recover from any party liable to him, the amount of the re-exchange, with interest thereon until the time of payment.

(8) Where by this Act interest may be recovered as damages, such interest may, if justice require it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.

Bills of Exchange

Transferor by

transferee

59. (1) Where the holder of a bill payable to bearer negotiates it by delivery without indorsing it, he is called a 'transferor by delivery.' delivery and (2) A transferor by delivery is not liable on the instrument. (3) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, being a holder for value, that the bill is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any fact which renders it valueless.

DISCHARGE OF BILL

60. (1) A bill is discharged by payment in due course by or on Payment in due behalf of the drawee or acceptor.

'Payment in due course means payment made at or after the maturity of the bill to the holder thereof, in good faith and without notice that his title to the bill is defective.

(2) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged; but

(a) Where a bill payable to, or to the order of, a third party
is paid by the drawer, the drawer may enforce pay-
ment thereof against the acceptor, but may not
re-issue the bill.

(b) Where a bill is paid by an indorser, or where a bill pay-
able to drawer's order is paid by the drawer, the
party paying it is remitted to his former rights as
regards the acceptor or antecedent parties, and he
may, if he thinks fit, strike out his own and subse-
quent indorsements, and again negotiate the bill.

(3) Where an accommodation bill is paid in due course by the party accommodated, the bill is discharged.

61. When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the indorsement of the payee or any subsequent indorsement was made by or under the authority of the person whose indorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such indorsement has been forged or made without authority.

course

Banker paying

demand draft whereon indorse

ment is forged

62. When the acceptor of a bill is or becomes the holder of it at or Acceptor the after its maturity, in his own right, the bill is discharged.

holder at
maturity

63. (1) When the holder of a bill at or after its maturity absolutely Express waiver and unconditionally renounces his rights against the acceptor the bill

is discharged.

The renunciation must be in writing, unless the bill is delivered

up to the acceptor.

(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at, or after its maturity; but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation.

64. (1) Where a bill is intentionally cancelled by the holder or his Caucellation agent, and the cancellation is apparent thereon, the bill is discharged.