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Section 90 - Extinguishment of rights of action on bill in acceptor's hands, Section 91 - Dishonour by non-acceptance : Negotiable Instruments Act 1881

 

 

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

Section 90 of Negotiable Instruments Act 1881: "Extinguishment of rights of action on bill in acceptor's hands"

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.

 

Section 91 of Negotiable Instruments Act 1881: "Dishonour by non-acceptance"

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

Section 99 - Noting

Section 100 - Protest

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