Section 113 - Payment for honour, Section 114 - Right of payer for honour : Negotiable Instruments Act 1881

What is Payment for honour? What is Right of payer for honour? Payment for honour and Right of payer for honour are defined under Section 113 and 114 of Negotiable Instruments Act 1881

 

 

Section 113 of Negotiable Instruments Act 1881: "Payment for honour"

When a bill of exchange has been noted or protested for non-payment, any person may pay the same for the honour of any party liable to pay the same :

Provided that the person so paying or his agent in that behalf has previously declared before a notary public the party for whose honour he pays, and that such declaration has been recorded by such notary public.

 

Section 114 of Negotiable Instruments Act 1881: "Right of payer for honour"

Any person so paying is entitled to all the rights, in respect of the bill, of the holder at the time of such payment, and may recover from the party for whose honour he pays all sums so paid, with interest thereon and with all expenses properly incurred in making such payment.