Section 111 - Liability of acceptor for honour, Section 112 - When acceptor for honour may be charged : Negotiable Instruments Act 1881

What is Liability of acceptor for honour? When acceptor for honour may be charged? Liability of acceptor for honour When acceptor for honour may be charged are defined under Section 111 and 112 of Negotiable Instruments Act 1881

 

 

Section 111 of Negotiable Instruments Act 1881: "Liability of acceptor for honour"

An acceptor for honour binds himself to all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee do not; and such party and all prior parties are liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him in consequence of such acceptance.

But an acceptor for honour is not liable to the holder of the bill unless it is presented, or (in case the address given by such acceptor on the bill is a place other than the place where the bill is made payable) forwarded for presentment, not later than the day next after the day of its maturity.

 

Section 112 of Negotiable Instruments Act 1881: "When acceptor for honour may be charged"

An acceptor for honour cannot be charged unless the bill has at its maturity been presented to the drawee for payment, and has been dishonoured by him, and noted or protested for such dishonour.