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Holder and Holder in Due Course Holder:-According To Section 8 of The Act
Holder and Holder in Due Course Holder:-According To Section 8 of The Act
Holder and Holder in Due Course Holder:-According To Section 8 of The Act
Noting:
As mentioned above, when a negotiable instrument within the
meaning of this Act is dishonoured, the holder of the instrument,
after giving notice of the same, can sue any or all the prior parties
liable thereon. But before he does so, he can get the fact of the
dishonour of the instrument authenticated by noting by a notary
public. Noting is the authentic and official proof of presentment
and dishonour of the instrument.
Noting means nothing but the recording of the fact of dishonor of
the instrument by a notary public within a reasonable time after
dishonour. Of course, nothing is not compulsory neither it affects
the rights of the holder thereon,
Noting contains the following particulars.
a) The fact and the date of dishonour of the
instrument
b) The reason or reasons if any, assigned for such
dishonour.
c) The rotary charges incurred.
d) If the instrument has not been expressly
dishonoured, the reason as to why the holder wants to
treat the same as dishonoured.
Protest:
According to section 100 of this Act, when a
promissory note or a bill of exchange has been
dishonoured b 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.
Thus protest is a formal certificate of dishonour of an
instrument issued by the notary public. Of Course, it is
issued to the holder of the instrument on his demand
only.
Contents of protest:
1.Either the instrument itself, or a literal transcript of the instrument and of every
thing written or printed thereupon;
2.The name of the person for whom and against whom the instrument has been
protested;
3. A statement that payment or acceptance, or better security, as the case may be,
has been demanded of such person by the notary public; the terms of his answer. If
any, or a statement that he gave no answer, or that he could not be found;
4. When the note or bill has been dishonoured, the place and time of dishonour, and
when better security has been refused, the place and time of refusal;
5. The subscription of the notary public making the protest;
1. 6 . In the event of an acceptance for honour or of a payment for honour, the name
of the person by whom, of the person for whom, and the manner in which, such
acceptance or payment was offered and effected.
2. 7. The signature of the notary public.