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Section 81 - Delivery of instrument on payment, or indemnity in case of loss, Section 82 - Discharge from liability : Negotiable Instruments Act 1881

 

 

What is Delivery of instrument on payment, or indemnity in case of loss? How to Discharge from liability? Delivery of instrument on payment, or indemnity in case of loss and Discharge from liability are defined under Section 81 and 82 of Negotiable Instruments Act 1881

Section 81 of Negotiable Instruments Act 1881: "Delivery of instrument on payment, or indemnity in case of loss"

(1) Any person liable to pay, and called upon by the holder thereof to pay, the amount due on a promissory note, bill of exchange or cheque is before payment entitled to have it shown, and is on payment entitled to have it delivered up, to him, or, if the instrument is lost or cannot be produced, to be indemnified against any further claim thereon against him.

(2) Where the cheque is an electronic image of a truncated cheque, even after the payment the banker who received the payment shall be entitled to retain the truncated cheque.

(3) A certificate issued on the foot of the printout of the electronic image of a truncated cheque by the banker who paid the instrument, shall be prima facie proof of such payment.

 

Section 82 of Negotiable Instruments Act 1881: "Discharge from liability"

The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon-

(a) by cancellation.-to a holder thereof who cancels such acceptor's or indorser's name with intent to discharge him, and to all parties claiming under such holder ;

(b) by release.-to a holder thereof who otherwise discharges such maker, acceptor or indorser, and to all parties deriving title under such holder after notice of such discharge ;

(c) by payment.-to all parties thereto, if the instrument is payable to bearer, or has been indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount due thereon.

 

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

Section 99 - Noting

Section 100 - Protest

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