Section 83 - Discharge by allowing drawee more than forty-eight hours to accept, Section 84 - When cheque not duly presented and drawer damaged thereby : Negotiable Instruments Act 1881

What is Discharge by allowing drawee more than forty-eight hours to accept? When cheque not duly presented and drawer damaged thereby? Discharge by allowing drawee more than forty-eight hours to accept and When cheque not duly presented and drawer damaged thereby are defined under Section 83 and 84 of Negotiable Instruments Act 1881

Section 83 of Negotiable Instruments Act 1881: "Discharge by allowing drawee more than forty-eight hours to accept "

If the holder of a bill of exchange allows the drawee more than forty-eight hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder

Section 84 of Negotiable Instruments Act 1881: "When cheque not duly presented and drawer damaged thereby"

(1) Where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or person on whose account it is drawn had the right, at the time when presentment ought to have been made, as between himself and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of the banker to a larger amount than he would have been if such cheque had been paid.

(2) In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case.

(3) The holder of the cheque as to which such drawer or person is so discharged shall be a creditor, in lieu of such drawer or person, of such banker to the extent of such discharge and entitled to recover the amount from him.

Illustrations
(a) A draws a cheque for Rs. 1,000, and, when the cheque ought to be presented, has funds at the bank to meet it. The bank fails before the cheque is presented. The drawer is discharged, but the holder can prove against the bank for the amount of the cheque.

(b) A draws a cheque at Umballa on a bank in Calcutta. The bank fails before the cheque could be presented in ordinary course. A is not discharged, for he has not suffered actual damage through any delay in presenting the cheque.