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Report No. 11

120. Rules as to presentment for acceptance and excuses for non-presentment.-

(1) A bill is duly presented for acceptance when it is presented in accordance with the following rules1-

(a) the presentment must be made by or on behalf of the holder to the drawee or to his representative, in business hours on a business day before the bill is overdue;

[Section 61, para 1, part, modified and section 75 part]

(b) (i) where a place of presentment for acceptance is specified in the bill, it must be presented at that place;

[Section 61, para 3, part]

(ii) where no such place of presentment is specified, but the address of the drawee is given in the bill, it must be presented at such address;

(iii) when no such place of presentment is specified and no address given, the bill must be presented at the place of business (if known) or ordinary residence (if known), of the drawee;

(iv) in any other case, the presentment may be made to the drawee in person wherever he can be found;

[Section 71, part]

(c) where a bill is addressed to two or more drawees who are not partners, presentment must be made to them all unless one has authority to accept for all, in which case presentment may be made to him only.2

(2) Delay in presentment is excused if the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate, presentment must be made within a reasonable time.

[Section 75A, part]

(3) Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance-

(a) where the drawee is dead or is insolvent or is a fictitious person or a person not having capacity to contract by bill;3

(b) where, at the due date for presentment, the drawee cannot, after reasonable search, be found at the place at which the bill is to be presented under sub-clause (i) or (ii) of clause (b) of sub-section (1);

[Section 61, para. 3, modified]

(c) where the holder of a bill drawn payable elsewhere than at the place of business or residence of the drawee, has no time with the exercise of reasonable diligence to present the bill for acceptance before presenting it for payment on the day it falls due;4

(d) where, after the exercise of reasonable diligence, such presentment cannot be effected;5 (New)

(e) where although the presentment has been irregular, acceptance has been refused on some other ground.6

(4) The fact that the holder has reason to believe that the bill, on presentment, will be dishonoured, does not excuse presentment.7

1. See section 41(1), BEA.

2. See section 41(1)(b), BEA.

3. See section 41(2)(a), BEA.

4. See section 39(4), BEA.

5. See section 41(2)(b), BEA.

6. See Section 41(2)(c), BEA.

7. See section 41(3), BEA.



Negotiable Instruments Act, 1881 Back




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