What is Extinguishment of rights of action on bill in acceptor's hands? What is Dishonour by non-acceptance? Extinguishment of rights of action on bill in acceptor's hands and Dishonour by non-acceptance are defined under Section 90 and 91 of Negotiable Instruments Act 1881
If a bill of exchange which has been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action thereon are extinguished.
A bill of exchange is said to be dishonoured by non-acceptance when the drawee, or one of several drawees not being partners, makes default in acceptance upon being duly required to accept the bill, or where presentment is excused and the bill is not accepted.
Where the drawee is incompetent to contract, or the acceptance is qualified, the bill may be treated as dishonoured.
Negotiable Instruments Act 1881
Section 81 - Delivery of instrument on payment, or indemnity in case of loss
CHAPTER VII OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
Section 82 - Discharge from liability
Section 83 - Discharge by allowing drawee more than forty-eight hours to accept
Section 84 - When cheque not duly presented and drawer damaged thereby
Section 85 - Cheque payable to order
Section 85A - Drafts drawn by one branch of a bank on another payable to order
Section 86 - Parties not consenting discharged by qualified or limited acceptance
Section 87 - Effect of material alteration
Section 88 - Acceptor or indorser bound notwithstanding previous alteration
Section 89 - Payment of instrument on which alteration is not apparent
Section 90 - Extinguishment of rights of action on bill in acceptor's hands
CHAPTER VIII OF NOTICE OF DISHONOUR
Section 91 - Dishonour by non-acceptance
Section 92 - Dishonour by non-payment
Section 93 - By and to whom notice should be given
Section 94 - Mode in which notice may be given
Section 95 - Party receiving must transmit notice of dishonour
Section 96 - Agent for presentment
Section 97 - When party to whom notice given is dead
Section 98 - When notice of dishonour is unnecessary
CHAPTER IX OF NOTING AND PROTEST