Right of payer (5). Drawee in case of need. Acceptance and payment with out protest. he pays, and that such declaration has been recorded by such notary public. 114. 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. 115. Where a drawee in case of need is named in a bill of exchange, or in any indorsement thereon, the bill is not dishonoured until it has been dishonoured by such drawee. 116. A drawee in case of need may accept and pay the bill of exchange without previous protest. Rules as to compensation. Eng. Act, s. 57 (1). s. 57 (2). s. 57 (16). s. 57 (2). 8. 57, note (p). CHAPTER XII. OF COMPENSATION. 117. The compensation payable in case of dishonour of a promissory note, bill of exchange or cheque, by any party liable to the holder or any indorsee, shall (except in cases provided for by the Code of Civil Procedure, section 532) be determined by the following rules :— (a) the holder is entitled to the amount due upon the instrument, together with the expenses properly incurred in presenting, noting and protesting it; (b) when the person charged resides at a place different from that at which the instrument was payable, the holder is entitled to receive such sum at the current rate of exchange between the two places; (c) an indorser who, being liable, has paid the amount due on the same is entitled to the amount so paid with interest at six per centum per annum from the date of payment until tender or realization thereof, together with all expenses caused by the dishonour and payment; (d) when the person charged and such indorser reside at different places, the indorser is entitled to receive such sum at the current rate of exchange between the two places; (e) the party entitled to compensation may draw a bill upon the party liable to compensate him, payable at sight or on demand, for the amount due to him, together with all expenses properly incurred by him. Such bill must be accompanied by the instrument dishonoured and the protest thereof (if any). If such bill is dishonoured, the party dishonouring the same is liable to make compensation thereof in the same manner as in the case of the original bill. CHAPTER XIII. SPECIAL RULES OF EVIDENCE. 118. Until the contrary is proved, the following presumptions shall Presumptions be made: (a) that every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, indorsed, negotiated or transferred was accepted, indorsed, negotiated or transferred for consideration; (b) that every negotiable instrument bearing a date was made or drawn on such date; as to negotiable instruments of consideration; Eng. Act, s. 30 (1). as to date; s. 13 (1). as to time of acceptance; (c) that every accepted bill of exchange was accepted within a reasonable time after its date and before its maturity; (d) that every transfer of a negotiable instrument was made before as to time of its maturity; (e) that the indorsements appearing upon a negotiable instrument were made in the order in which they appear thereon; (ƒ) that a lost promissory note, bill of exchange or cheque was duly stamped; (g) that the holder of a negotiable instrument is a holder in due course provided that, where the instrument has been obtained from its lawful owner, or from any person in lawful custody thereof, by means of an offence or fraud, or has been obtained from the maker or acceptor thereof by means of an offence or fraud, or for unlawful consideration, the burthen of proving that the holder is a holder in due course lies upon him. transfer; indorsements; s. 32 (5). as to stamp; that holder is course. s. 30 (2). 119. In a suit upon an instrument which has been dishonoured, the Presumption Court shall, on proof of the protest, presume the fact of dishonour, unless and until such fact is disproved. 120. No maker of a promissory note, and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as originally made or drawn. 121. No maker of a promissory note and no acceptor of a bill of exchange payable to, or to order of, a specified person shall, in a suit thereon by a holder in due course, be permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same. 122. No indorser of a negotiable instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity to contract of any prior party to the instrument. on proof of protest. Estoppel Estoppel to against deny. Cheque crossed generally. Eng. Act, s. 76 (1). Cheque crossed Crossing after issue. s. 77 (2). s. 77 (3). s. 77 (4). s. 77 (5). Payment of cheque crossed due course of Payment of crossed cheque out of due course. s. 79 (2). Cheque bearing 66 not negotiable." CHAPTER XIV. OF CROSSED CHEques. 123. Where a cheque bears across its face an addition of the words "and company" or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, either with or without the words "not negotiable," that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed generally. 124. Where a cheque bears across its face an addition of the name of a banker, either with or without the words "not negotiable," that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially, and to be crossed to that banker. 125. Where a cheque is uncrossed, the holder may cross it generally or specially. Where a cheque is crossed generally, the holder may cross it specially. Where a cheque is crossed generally or specially, the holder may add the words "not negotiable." Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker, his agent, for collection. 126. Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker. Where a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection. 127. Where a cheque is crossed specially to more than one banker, except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof. 128. Where the banker on whom a crossed cheque is drawn has paid the same in due course, the banker paying the cheque, and (in case such cheque has come to the hands of the payee) the drawer thereof, shall respectively be entitled to the same rights, and be placed in the same position in all respects as they would respectively be entitled to and placed in if the amount of the cheque had been paid to and received by the true owner thereof. 129. Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is crossed, or his agent for collection, being a banker, shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid. 130. A person taking a cheque crossed generally or specially, bearing in either case the words "not negotiable," shall not have, and shall not be capable of giving, a better title to the cheque than that which the person from whom he took it had. 131. A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment. Non-liability CHAPTER XV. OF BILLS IN SETS. 132. Bills of exchange may be drawn in parts, each part being Set of bills. numbered and containing a provision that it shall continue payable s. 71 (1), (6). only so long as the others remain unpaid. All the parts together make a set; but the whole set constitutes only one bill, and is extinguished when one of the parts, if a separate bill, would be extinguished. Exception. When a person accepts or indorses different parts of the s. 71 (2), (4). bill in favour of different persons, he and the subsequent indorsers of each part are liable on such part as if it were a separate bill. 133. As between holders in due course of different parts of the same set, he who first acquired title to his part is entitled to the other parts and the money represented by the bill. Holder of first acquired part entitled to all. s. 71 (3). CHAPTER XVI. OF INTERNATIONAL LAW. 134. In the absence of a contract to the contrary, the liability of the maker or drawer of a foreign promissory note, bill of exchange or cheque is regulated in all essential matters by the law of the place where he made the instrument, and the respective liabilities of the acceptor and indorser by the law of the place where the instrument is made payable. Illustration. A bill of exchange was drawn by A in California, where the rate of interest is 25 per cent., and accepted by B, payable in Washington, where the rate of interest is 6 per cent. The bill is endorsed in British India, and is dishonoured. An action on the bill is brought against B in British India. He is liable to pay interest at the rate of six per cent. only; but if A is charged as drawer, A is liable to pay interest at the rate of 25 per cent. Law of place 135. Where a promissory note, bill of exchange or cheque is made of payment payable in a different place from that in which it is made or indorsed, governs dishonour. the law of the place where it is made payable determines what constiEng. Act, s. 72 tutes dishonour and what notice of dishonour is sufficient. (3). Instrument made, &c., out Presumption as to foreign law. Illustration. A bill of exchange drawn and indorsed in British India, but accepted payable in France, is dishonoured. The indorsee causes it to be protested for such dishonour, and gives notice thereof in accordance with the law of France, though not in accordance with the rules herein. contained in respect of bills which are not foreign. The notice is sufficient. 136. If a negotiable instrument is made, drawn accepted or indorsed out of British India, but in accordance with the law of British India, the circumstance that any agreement evidenced by such instrument is invalid according to the law of the country wherein it was entered into does not invalidate any subsequent acceptance or indorsement made thereon in British India. 137. The law of any foreign country regarding promissory notes, bills of exchange and cheques shall be presumed to be the same as that of British India, unless and until the contrary is proved. [SCHEDULE. |