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
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.
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.
Negotiable Instruments Act 1881
Section 101 - Contents of protest
Section 102 - Notice of protest
Section 103 - Protest for non-payment after dishonour by non-acceptance
Section 104 - Protest of foreign bills
Section 104A - When noting equivalent to protest
CHAPTER X OF REASONABLE TIME
Section 106 - Reasonable time of giving notice of dishonour
Section 107 - Reasonable time for transmitting such notice
CHAPTER XI OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
Section 108 - Acceptance for honour
Section 109 - How acceptance for honour must be made
Section 110 - Acceptance not specifying for whose honour it is made
Section 111 - Liability of acceptor for honour
Section 112 - When acceptor for honour may be charged
Section 113 - Payment for honour
Section 114 - Right of payer for honour
Section 115 - Drawee in case of need
Section 116 - Acceptance and payment without protest
CHAPTER XII OF COMPENSATION
Section 117 - Rules as to compensation
CHAPTER XIII SPECIAL RULES OF EVIDENCE
Section 118 - Presumptions as to negotiable instruments
Section 119 - Presumption on proof of protest
Section 120 - Estoppel against denying original validity of instrument