20 THE NEGOTIABLE INSTRUMENTS ACT, 1881 ‘The Negotiable Instruments Act, 1881 w, aS enacted with the fable instrument pass from hand to h oe and like ordinary goods, Mo.acieve the objective of the Act, the Legislature has in its wisdom pact for conferring privileges to the mercantile instruments conten procedure in case the obligations under the instruments are set gtruments is the law of commercial world legislated to facilitate ty on of giving sanctity to the instruments of credit w! le from one person to another object to legalise the system under which thought it proper to make provisions in lated under it and provide special penalties discharged. The law relating to negotiable we activities in trade and commerce making hich could be deemed to be convertible inta money and NEGOTIABL INSTRUMENT p 13(1) of the Act provides that a negotiable instrument means a promissory note, le either to order or to bearer. : 2 bill of exchange or note is an instrument in writing (not being a banknote undertaking signed by the maker, to pay a certain sum of money sthe bearer of the instrument. [Section 4] ‘whether a particular document is a promissory note or not, has to be decided with reference to— cription of the instrument; of the instrument taken as a whole; tances under which the document came to the executed; n of the parties manifest on the face of the document; and or a currency-note) containing an only to, or to the order of, a certain s have a cumulative bearing on a proper construction of the documents to determine whether it ‘or not. [Rangaswami v Govindaswamy, AIR 1981 Mad 434] ‘of a Valid Promissory Note1450 _____ Guide to Judicial Service 1. [had borrowed a sum of &..........._bearing interest at the rate of.......... per cent, from B on 28th March, 1939, and have therefore executed this pronote: |, of my own free will and accord, approached M and borrowed from him the sum of &.... bearing interest at the rate of... per cent. per mensem for the purpose of purchasing bullocks. have therefore executed these few presents by way of a promissory note. The Allahabad High Court held that the above two documents, although called ‘promissory notes,’ were merely acknowledgments of the debts coupled with an agreement to pay interest, but they were not promissory notes, Bill of Exchange A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing. a certain person to pay a certain sum of money only to, oF to the order of, a certain person or to the bearer of the instrument. [Section 5] Essential Requirements of a Valid Bill of Exchange The following are the eight essential requirements of a valid Bill of Exchange: Ltt must be in writing: Te must contain an onder to pay; The order contained in the bill should be unconditional; It must be signed by the drawer; The drawee must be ce The payee must be cer The sum payable must be certain; It must contain an order to pay money, and money only. The essentials of bill of exchanges are that the instrument must be in writing and the instrument includes every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished of recorded and it should be signed by the maker and there must be an order to pay. [Krishna Devi 0 Firm Tikayaram Lekhraj Batra, | (2003) BC 644. (MP)] Parties to a Bill of Exchange The three parties involved in a bill of exchange are: 1. the drawer; 2. the drawee: and 3. the payee. The drawer is one who draws or makes the bill; the drawee is one who is ordered to pay the bill and the payee is one to whom the payment is to be made. Cheque A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it inchades the electronic image of a truncated cheque and a cheque in the electronic form, [Section 6 as amended in 2002 by Act 55 of 2002 w.e.f. 6 February, 2003] A cheque to be valid should certainly specify the amount and also the details regarding the payee, Ifat the time ‘of the issue, the amount is not specified and payee is uncertain, than the cheque does not become a valid ‘negotiable instrument as defined in the Act. For being a valid negotiable instrument the essential requisite was certainty, regarding the amount to be paid as well as the person to whom the amount has to be paid. [Capital Syndicate v Jamecla, 2003 (1) CCC 579 (Ker) PROBLEM:—Distinguish between— (a) Promissory Note and Bill of Exchange. (b) Promissory Note and Bond. (©) Cheque and Bill of Exchange,— Promissory Note sal ite = an ge Tq Ina promissory note there are only two parties, | (i) Ina bill of exchange, there are three Parties to be | “" themaker and the payee A (he maker himself. Gi a ruments Act, 1881 1451 1 specified, i., drawer, drawee and payee; though any two out of these three aul may be _filled by one and the same person promissory note cannot be made payable to (ii) In a bill of exchange, the di be the same a ey promissory note there is an unconditional promise by the drawer to pay a certain sum to the payee. (iii) In bill of ‘exchange, there is an unconditional order to a drawee, to comply with the drawer's direction as to payment. tiv) The liability of the maker of the promissory note is absolute because he unconditionally binds himself to pay- (iv) The obligation undertaken by the drawer of a bill of exchange is only conditional since he becomes a surety for payment by the drawer. ba The maker of the promissory note becomes the principal debtor. (v) The drawee of a bill of exchange on acceptance becomes the principal debtor as he accepts the primary liability to pay according to the tenor of the bill of exchange. tb) Promissory Note Bond w Section 4 of the Negotiable Instruments Act, 1881 defines ‘promissory note’ as an instrument in writing (not being a bank-note or currency- role) containing an unconditional undertaking signed by the maker, to pay a certain sum of ‘money only to, or to the order of, a certain person, or to the bearer of the instrument. ‘In case of a promissory note, the amount of ‘money payable under the instrument must be {) Section 2(5) of the Stamp Act defines the term “bond’ as including— 7 (a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if specified act is performed, or is not performed, as the case may {b) any instrument attested by a witness and not payable to order or bearer whereby = person rptiges himself to pay money to another, and (© any. instrument so. attested, whereby 2 person obliges himself to deliver grain oF bther agricultural produce 1 i case of a bond the amount of money payable not be certain. (i) hs may: “Aa Tnsrciment fo be a bond must neces PS attested by a withess. yyable to order oF bearer ii) iv) Abond is not pay1452 uide to Judicial Service Examination Cheque Bill of Exchange. (GA cheque is payable immediately on demand| (ina bill of exchange, in certain cases, grace ae without any days of grace. are allowed, In the case of a cheque the drawee must always | (iil) In the case of a bill of exchange anybody can be bea specified banker. a drawee. (iv) If the cheque is not duly presented to the bank, | (iv) A. bill must be duly presented for payment, the drawer will not be discharged. He will be otherwise the drawer will be discharged. discharged only if the delay in presenting the cheque for payment causes a change in his position by the failure of the bank, if he had sufficient funds deposited with the bank to meet the amount of the cheque, PROBLEM:—What is the effect of crossing a cheque? ‘Ans.: Crossing of a cheque is a direction to the paying bank to pay the money to a bank. The object of crossing, is to secure payment to a banker in order that it may be easily traced for whose use the money was received and to compel the holder to present it through a quarter of known respectability and credit. Crossing is regarded as a direction to the collecting banker to apply the proceeds to the payee account. [Tailor’s Priva v Gulabchand, AIR 1963 Cal 36]. Thus a crossed cheque is not payable to the payee or holder at the counter of the bank. The payment can bbe obtained only through a banker, The payee must have an account with some banker and then pay the cheque into his account to enable the banker to receive its payment on his behalf and credit it into his account. The object. of crossing is to assure that only the rightful owner gets the payment. PROBLEM:—Define—Drawer,, ‘Drawee’, ‘Acceptor, ‘Payee’. Discuss the liabilities of a drawer and a drawee. Ans. ‘Drawer, ‘Drawee’—Section 7 of the Negotiable Instruments Act, 1861, lays down that the maker of a bill of exchange or cheque is called the ‘drawer’ and the person thereby directed to pay is called the ‘drawee’ “Acceptor’.—After the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called, the acceptor. ‘Payee’—The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the ‘payee’. Liabilities of drawer and drawee—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. In the absence of a contract to the contrary, the maker of a promissory note and the acceptor before maturity of bill of exchange are bound to pay the amount thereof at maturity according to the apparent tenor of the note or acceptance respectively and the acceptor of a bill of exchange on or after maturity is bound to pay the amount thereof to the holder on demand. (Section 31), The liability of the drawee under this section arises only when he accepts the bill. AMBIGUOUS INSTRUMENTS. Where an instrument may be construed either as a promissory note or bill of exchange, the holder may at his election treat it as either and the instrument shall be thenceforward treated accordingly. (Section 17] A litigant can invoke section 17 only in a case where the instrument is ambiguous in its language and permits the controversy as to whether it is a promissory note or is a bill of exchange. Where an instrument is clear in its form and expression and permits of no controversy, the litigant cannot invoke any privilege contained in section 17 of the Negotiable Instruments Act. [Shiv Kumar Gupta v Permanand Ram Gopal, AIR 1973 Del 135] ENDORSEMENT, ENDORSER, PERSONS WHO CAN ENDORSE? EFFECT OF ENDORSEMENT, KINDS OF ENDORSEMENT, LIABILITIES OF ENDORSER When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same cecilia aRegotiable Instruments Act, 1881 1453 purpose stamped paper intended to be completed asa negotiabl ej the ‘endorser, [Section 15] instrument, he is said to endorse the same and sons who can Endorse Section 51 of the Negotiable Instruments Act, 1881 provide: sees may endorse Effect of Endorsement section 50 lays down that the endorsement of a ne y ‘of a negotiable instrument followed by deli endorse the property therein with the right of further negotiation. manos a mo es {a) transfers to the endorsee the property in the bill, ace Per maker, drawer, : , payee or endorse and negotiate the instrument ae {b) vests in him the right of action against all parties whose names appear on instrument, and (6) gives him a right of further negotiating the instrument to any one he pleases However, the endorsement may, by express words, restrict or excl en ee a ae ee ieee ae ; or for some other specified Kinds of Endorsements Endorsement may be of the following kindss— (a) Endorsement in blank—If the endorser signs only his name on the back of the i pose ‘of negotiating it, it is an endorsement in blank, [Section 16] me ee ~(b) Endorsement in full—If the endorser add: si a isto his signature the name of a cho © hhe wants the instrument to be paid, itis an Sea RRMA ep ee ee Restrictive endorsement—An endorsement of a negotiable instrument makes the endorsee owner of the "instrument and confers upon him the right of further negotiation. But if this right of further negotiation f= : restricted or excluded by express words, it is called ‘restrictive’ endorsement. [Section 50] Conditional endorsement—If the endorser inserts any condition in the endorsement, it is called a ‘conditional endorsement. [Section 52] Partial endorsement—Although an instrument cannot be ‘endorsed to transfer only a part of the amount | appearing to be due on the instrument but where such amount has been party alg 2.906 1 that effect ea ‘endorsed on the instrument, which may then be negotiated for the balance, Such an endorsement is called a partial endorsement. [Section 56] ‘of a negotiable instrument by means of endorsement: d that on due presentment the instrument that if it be dishonoured he would compensate the holder or a led to pay it, provided notice of dishonour is duly given to him. ser is precluded from denying to a holder in ‘due course the genuineness or regularity in all cts of the drawer's signature and all previous endorsements. he endorser is precluded from denying t his immediate or subsexuen! endorse that the bill was, at the sendokement a valid and subsisting bill and that he had then a good title thereto the thereby incurs the liability : fse than as a drawer oF acceptor, 1 incur this liability the bill must be regular in every impliedly promises as follows— shail be accepted and paid according to its ‘subsequent endorser who is representative of a deceased person to become party Act. fer and negotiate suchtide to Judicial Service Examination 1454 will not be held liable on it. In Sulochana 0 Pandiyan Bank Ltd., AIR 1975 Mad 70, it was contended that the promissory note executed by the defendant along with his minor daughter was not valid in law, but the Madras High Court held that although itis true that no liability could be enforced against the minor executant, but the first defendant who was also a party to the document could not escape liability. Even where a minor becomes a party by misrepresenting his age, he will neither be liable, nor there will be any estoppel against him from disclosing his real age. [Leslie (R) Ltd. v Shell, (1914) 3 KB 607; Dhara Singh v Gayant Chand, 16 All LJ 441] Legal Representative of a deceased person.—Section 29 of the Negotiable Instruments Act lays down that a legal representative of a deceased person who signs his name to a promissory note, bill of exchange or cheque is liable personally thereon unless he expressly limits his liability to the extent of the assets received by him as such. Section 2(11) of the Code of Civil Procedure defines legal representative as a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and when a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party so suing or sued. In K. Subbanna 7 K. Sublarayudie, AIR 1926 Mad 390 it was held that the term ‘legal representative’ in section 29 includes executors or administrators. In H.B. Warden v Ratanbhai, AIR 1933 Bom 444 (DB), a pronote was headed “Estate of late Mr. BH. Warden’. It was executed by the defendants who were described as executors of the estate and it was signed by them as “Executor of the estate the late BH. Warden”; it was held that there was no express limitation of liability to the extent of the assets received by the defendants as executors and that they were personally liable under it, Under section 29, the liability should be expressly limited and not merely impliedly. PRESENTMENT Section 21 of the Negotiable Instruments Act provides that in a promissory note or bill of exchange the expression “at sight” and “on presentment” means on demand. The expression “after sight” means, in a promissory note, after presentment for sight, and, in a bill of exchange after acceptance, or noting, for non- acceptance, or protest for non-acceptance. The payee or holder of an instrument has certain duties to perform, before he can claim payment. Ifthe bill requires acceptance, it must be presented for acceptance, In some cases the bill must be presented for payment also, Thus there are two kinds of presentments: (a) presentment for acceptance, and (b) presentment for payment. (a) Presentment for Acceptance Section 61 of the Negotiable Instruments Act provides that a bill of exchange payable after sight must time of place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable search, be found, by a person entitled to demand acceptance, within a reasonable time after itis drawn, and in business hours on a business day. In default of such presentment, no party thereto is Hable thereon to the person making such default. In order to constitute the bill a negotiable instrument, itis not absolutely necessary that the bill should be accepted before itis negotiated. However, in the following, two cases, the bill must be presented for acceptance before it can be presented for payment— (i) where a bill is payable after sight, presentment for acceptance is essential in order to fix the maturity of the bill: (ii) where the bill expressly stipulates that it must be presented for acceptance before it is presented for payment, ‘The presentment for acceptance must be made to— (i) Drawee or his duly authorized agent. (i) Where there are several drawees who are not partners, presentment must be made to all of them, unless one drawee has authority to accept forall in which case presentment must be made to him only. (ii) Ifthe several drawees are partners, presentment fo one partner is sufficient. (iv) Ifthe draweoe is dead it must be made to his legal representative. (©) Ifthe drawer is bankrupt, then to his assignee. When authorised by agreement or usage, presentment through post office (ofa registered fetter is sufficient. (Section 61, 4th para) eh poet ots bape es__ The Negotiable ruments Act, 1881 a 1455 (b) Presentment for Payment Section 64 of the Negotiable Instruments Act lays down th snust be presented for payment to the maker, acceptor or dra sida eatgel 7 ‘or or drawee thereof respectively, by or on behalf of the holder as! =e ees : Es fault of such presentment, the other parties thereto are not liable thereon to such holder. Vhere authorised by agreement or usage, a . iesufficient. ‘Sage, a presentment through the post office by means of a registered letter lat promissory notes, bills of exchange and cheques Thus, for payment the promissory notes, bills of exch Os eevee the Prom Is of exchange and cheques must be presented to the maker, acceptor or drawer thereof respectively, by or on behalf of the holder, If itis not so presented, the drawers and endorsers will be discharged. 5 ‘Time of Presentment Where a bill or promissory note is payable after sight it must be presented by the holder for the drawee's or maker's acceptance within the specified time or, if no time is specified, within a reasonable time of its issue. ae Lime is a question of fact that depends upon the means of communication available and usages of a particular trade. Where an instrument is payable after a fixed period of time, it should be presented for payment on its maturity (Section 66). An instrument payable on demand must be presented for payment within reasonable time after it is received by the holder (Section 74). If he does not do so, all parties, except the drawer, will be discharged from liability to the holder (Section 73). As per the provisions of section 65 of the Act, in al cases, presentment should be ‘made during the usual hours of business and, in the case of a cheque, within banking hours. Place of Presentment Section 61 of the Act lays down that if the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the bill is dishonoured. Section 68 of the Act lays down that if a promissory note, bill of exchange or cheque made, drawn or accepted payable at a specified place and not elsewhere must be presented for payment at that place. Section 69 then provides that 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 that place: But if no place for presentment is specified in the note or bill, presentment must be made at the place of business, if a atthe usual residence ofthe maker, drawoe or acceptor thereot, 28 the case may be Section 70) Ifthe maker, drawee or accepter of a negotiable instrument has no known place of business or fixed residence, and no place is specified in the instrument for presentment for acceptance or payment, such presentment may be made tohim in person wherever he can be found. If the maker, drawee or accepter cannot be found, presentment in the street oF wherever else he can be found ‘would be good [Cross v Snrith, (1813) 1 M&S 545]. Where a bill has been accepted payable at the acceptor’s bank, presentment must be made at the bank, and presentment to the acceptor personally will not be sufficient. [Gibb w Mather, (1832) 2 Cr &) 254: 149 ER 110 (&Ch)} i! ke) ee CROSSED CHEQUES (SECTIONS 123-130) Crossed Cheques (Section 123) F ee, Where a cheque bears across lis face an addition of the words ‘an company cr breton haw cen two panllel teanvere ines, of two parallel transverse lines simply (80! 11 Toe any. “not negotiable”), that addition is deemed to be a “crossing,” and the cheque ion 123) te Payment of cheque cross generall ion 126) ly (Section: it otherwise than to a banker. When eee ‘on whom it is drawn cannot pay it oF ‘Che "que Crossed Specially (Section 124) il thout the words " a Sea: ‘ross the face an addition of the name of a Los ea bes oe er ie al {Set negotiable), that addition is deemed to be a crossing, and bereits crossed to that banker. bs ————1456 Guide to Judicial Service Examination Payment of Cheque Crossed Specially (Section 126) Where a cheque is crossed specially, the banker on whom it is drawn cannot pay it otherwise than to the banker to whom itis crossed or his agent for collection, Payment of Cheque Crossed Spe ly more than One (Section 127) Where a cheque is crossed specially to more than one banker (except when crossed to an agent for the purpose of collection), the banker on whom it is drawn must refuse payment thereof, Payment in due course of Crossed Cheque (Section 128) Where the banker on whom a crossed cheque is drawn has paid the same in due course, the banker cheque ing the nd (in case such cheque has come to the hands of the payee) the drawer thereof, are respectively entitled to the same rights, and are placed in the same position in all respects, as they would respectively be entitled to, and placed in, if the amount of the cheque had been paid to, and received by the true owner thereof. Payment of crossed cheques out of due course (Section 129) Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is crossed, (or his agent for collection being a banker) becomes liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid. Cheque bearing ‘not negotiable’ (Section 130) A person taking a cheque crossed generally or specially, bearing, in either case, the words “not negotiable”, does not have, and is not capable of giving, a better title to the cheque than that which the person from whom he took it had. DISHONOUR OF CHEQUE, LIABILITY OF DRAWER Section 138 of the Negotiable Instruments Act as amended by Act 55 of 2002 w.e¢. 6 February, 2003 provides that where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, for any debt or other liability, is retumed by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall without Prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque or with both. The provisions appended to section 138 lays down that nothing contained in this section shall apply unless— (@) the cheque has been presented to the bank within a period of six months from the date on which it is ‘drawn or within the period of its validity, whichever is earlier; (b) the payer or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within 30 days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and (©) the drawer of such cheque fails to make the payment of the said amount of money to the payer or, as the case may be, to the holder in due course of the cheque, within 15 days of the receipt of the said notice ‘The essential requirements to attract section 138 are the following — (@) The cheque or an amount is issued by the drawer to the payee/complainant on a bank account maintained by him (b) The said cheque is issued for the discharged in whole or in part of any debt or other liability. (©) The cheque is returned by the bank unpaid on account of insufficient amount to honour the cheque or it exceeds the amount arranged to be paid from that account by an agreement made with the bank. (d) The cheque is presented to the bank within 6 months from the date on which it is drawn or within the period of its validity whichever is earlier. (©) Within 30 days demand notice is issued by the payee or the holder in due course on receipt of information bby him from the bank regarding the dishonour of the cheque. (f) The drawer of said cheque fails to make the payment of the said amount of the money to the payee or the holder in due course within 15 days of the said notice. (g) The debt or liability against which the cheque was issued is legally enforceable.Ee fruments Act, 1881157 The offence under section 138 of the mens rea, by creating strict liability. It do ts Act is a statutory offence. This section excludes So anh Sun ee nh ee ceo oh A The xo ps reo ran rt mn: ae Negotiable Instruments Act ic very cect, & 2 Necessary ingredient ofan offence under section 138 of the : , ¥ explicit: (G. Rukkumani v K. Rajendran, 2001 Cri Lf 3120 (Mad)] Section 141 of the Negotiable Instruments Act lays down that when a drawer of a dishonoured cheque is a company, every person who, at the time the offence - offence and shall be liable Iny, as well as the company, shall be deemed to be guilty of is cee and shal be lable be proceeded apna nd purched scoring However ood a peso an ee offence was committed without his knowledge, of that he had exercised all de ilgence to prevent the commision of such offence. In An Haw haan Acai Lids (200) 1 SC it was fadividual. que can be presented whether it be a company, a partnership firm or he be an Negotiable Instrument Section 147 of the Negotiable Instruments Act lays down that all offences under this Act are compoundable. Thus besides a criminal prosecution of the offender whose cheque is dishonoured or a civil suit against the said offender/drawer of the cheque, an additional avenue is q Pi que, tional avenue is provided now by the legislature and the payee/holder may, on receipt of the amount of dishonoured cheque or even more, can compound the offence with the drawer of the cheque /accused in cases where the accused is willing to compromise with the complainant. PROBLEM:—When the liability of an instrument is discharged? Ans. The liability of an instrument is discharged under the following ciecumstances— (i) Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged. (Section 82) (ii) The holder can discharge the maker, acceptor or endorser by a separate agreement or may do so by conduct which has the effect of discharging a party from his liability. [Section 82(b)] (iii) Parties to an instrument are discharged from liability when the amount due on the instrument is paid. Payment can be made by party tothe instrument and he can recover the amount from the party primarily, liable. (iv) If the holder of a bill allows the drawee more than 48 hours, to consider whether he will accept the same, all previous partes not consenting to such allowance are thereby discharged from lability to such holder. E pe llified ntar limited of the (©) If the holder of a bill of exchange acquiesces in a qualified acceptance, or one limited to part of the sum aoenaaonstn the bill, or which substitute a different place or time for payment, or which, where the aaa eeae a sgt partners, is not signed by all the drawees all previous parties are discharged as against Gratrelder nleson notice given by the holder they assent to such acceptance [Section 86] PA isc kc ot a chu fil to preset it or payment within 2 enacnable tne of Hs neue and before he daz happens which prevents the banker from paying the cheque, then ey agpraee ose one aeevainst the holder provided that he had suificent balance to irawer of the cheq a ‘have been presented. [Section meet the cheque when it ought to nee er nenan) 3 : ee oe ovable instrument renders the same void as against anyone who i a party Be ener se a ert alert eed Sos nok corn tert les wen made in adero et a en inteton ofthe original partis [Section 57] ' __ carry out the common intention TT cgviated i at on or after maturity, held by the acceptor in his own (iti) If a bill of exchange whic a eee guished, (ection %). That is, when a bill of exchange comes back, right, all rights of a thereon 6 OF nepotition and be becomes is holder, ator afer maturity, all to the acceptor throu process liability on the instrument comes to anend. ae [aS TO NEGOTIABLE INSTRUM! negotiable instruments. These presumptions are a8 ? ie proved, its presumed that every negotiable instrument © Presumption ofeositeton nn may Pry sch instrument, when it has been accepted was made or drawn (0°