Sections 109 and 110 of Negotiable Instruments Act 1881: Acceptance for Honour

Sections 109 and 110 form part of Chapter XI of the Negotiable Instruments Act, 1881. They prescribe how an acceptance for honour must be made and determine whose honour is protected when the acceptance does not identify a particular party.

Statutory context: Under Section 108, after a bill of exchange has been noted or protested for non-acceptance or for better security, a person who is not already liable on the bill may, with the holder's consent and by writing on the bill, accept it for the honour of a party. Sections 109 and 110 specify the form and attribution of that acceptance.

Section 109 - How Acceptance for Honour Must Be Made

A person desiring to accept for honour must, by writing on the bill under his hand, declare that he accepts under protest the protested bill for the honour of the drawer or of a particular indorser whom he names, or generally for honour.

Meaning and requirements of Section 109

Section 109 prescribes the manner in which an acceptance for honour is made. The person accepting must make the declaration in writing on the bill and under that person's hand. The declaration must state that the protested bill is accepted under protest. It may identify the drawer, identify a particular indorser, or state that the acceptance is generally for honour.

The acceptance for honour must be in writing on the bill.
It must be made under the hand of the person accepting for honour.
The declaration must show that the protested bill is accepted under protest.
The acceptance may be for the honour of the drawer.
It may instead be for the honour of a named indorser.
It may also be expressed generally as an acceptance for honour.

Section 110 - Acceptance Not Specifying for Whose Honour It Is Made

Where the acceptance does not express for whose honour it is made, it shall be deemed to be made for the honour of the drawer.

Meaning and effect of Section 110

Section 110 supplies a statutory rule where an acceptance for honour does not identify the party for whose honour it was made. In that situation, the law treats the acceptance as having been made for the honour of the drawer.

This deeming rule avoids uncertainty about the party to whom a general or unspecified acceptance for honour is attributed.

How Sections 109 and 110 Work Together

Section 109 allows the person accepting for honour to specify the drawer or a particular indorser, or to accept generally for honour. Section 110 then determines the legal attribution when the acceptance does not express for whose honour it was made: it is deemed to have been made for the honour of the drawer.

Related Provisions

Section 108 sets out when a person may accept a bill for honour. Section 111 states the liability of an acceptor for honour, while Section 112 provides when an acceptor for honour may be charged. Sections 113 and 114 separately deal with payment for honour and the rights of a payer for honour.

Official Statutory Source

The text of Sections 109 and 110 can be verified in the official Negotiable Instruments Act, 1881 published through India Code. For litigation, professional advice or statutory interpretation, the official text and any applicable amendments should always be checked.