Equity Cases

BEFORE

THE MASTER OF THE ROLLS,

AND THE

VICE-CHANCELLORS.

In re LEEDS BANKING COMPANY.
Ex parte PRANGE.

Bill of Exchange-Indorsement" in need"—Notice of Dishonour.

A Bill of Exchange, the drawer and acceptor of which became bankrupt before it fell due, was indorsed by the Leeds Banking Company to Messrs. P., of Liverpool, payable" in need" at a bank in London. When it fell due, it was presented by Messrs. P.'s agent in London at the banks notified for payment by the acceptor and indorser, and dishonoured at both banks. Messrs. P.'s agent then sent notice of the dishonour, by post, to Messrs P., at Liverpool; and they, by post, sent notice to the liquidator of the Leeds Banking Company, which was being wound up. Upon claim against the Leeds Banking Company, under the winding-up, in respect of the bill :

Held, that the indorsement "in need" constituted the bank notified "in need" agents of the indorsers for payment only, and not agents for notice of dishonour generally; and therefore that notice to them of dishonour by the acceptor was not notice to the indorsers.

That presentation for payment to an indorser is not per se notice of dishonour by the acceptor; and,

That the rule allowing a day for each step in presentation and notice applies only as between the parties to a bill, and does not give a day for communication between the agent of the holder of a bill and such holder who resides at a distance; and, therefore,

The court disallowed the claim.

THIS was an adjourned summons arising out of a claim made by
Messrs. Prange under the winding-up of the Leeds Banking
Company in respect of two bills of exchange indorsed by the

VOL. I.

B

V.C. K.

1865

Nov. 4, 14.