When noting is 104 A. For the purposes of this Act, where a bill or note equivalent is required to be protested within a specified time or before to protest. some further proceeding is taken, it is sufficient that the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding; and the formal protest may be extended at any time thereafter as of the date of the noting 1. 1 Act II of 1885, sec. 6. CHAPTER X. OF REASONABLE TIME. 105. In determining what is a reasonable time for present- Reasonment for acceptance or payment1, for giving notice of dis- able time. honour and for noting, regard shall be had to the nature of the instrument and the usual course of dealing with respect to similar instruments 2; and, in calculating such time, public holidays shall be excluded *. time of 106. If the holder and the party to whom notice of dis- Reasonable honour is given carry on business or live (as the case may be) giving in different places, such notice is given within a reasonable notice of time if it is despatched by the next post or on the day next after the day of dishonour 5. If the said parties carry on business or live in the same place, such notice is given within a reasonable time if it is despatched in time to reach its destination on the day next after the day of dishonour. dishonour. able time 107. A party receiving notice of dishonour, who seeks to Reasonenforce his right against a prior party, transmits the notice for transwithin a reasonable time if he transmits it within the same mitting time after its receipt as he would have had to give notice if he notice. had been the holder. 1 or for sight, sec. 62. See 7 Ben. 431. Notice of dishonour of a bill drawn in India and payable in England should be posted by the first mail which leaves England after the dishonour of the 3 Sec. 25. • See sec. 98. 5 See sec. 98, cl. (d). such CHAPTER XI. OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED. Acceptance for honour. How acceptance must be 108. When a bill of exchange has been noted or protested for non-acceptance or for better security, any person not being a party already liable thereon may, with the consent of the holder, by writing on the bill, accept the same for the honour of any party thereto 2. 109. A person desiring to accept for honour must, by for honour 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 3. made. Acceptance not specifying for whose honour it is made. 110. 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. 111. An acceptor for honour binds himself to all parties Liability of acceptor subsequent to the party for whose honour he accepts to pay the for honour. amount of the bill if the drawee do not; and such party and all prior parties are liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him in consequence of such acceptance. But an acceptor for honour is not liable to the holder of the bill unless it is presented, or (in case the address given by such ́acceptor on the bill is a place other than the place where the 1 Secs. 7 and 33. The rest of this section was repealed by Act II of 1885, sec. 7. 3 As amended by Act II of 1885, sec. 8. . bill is made payable) forwarded for presentment, not later than the day next after the day of its maturity. acceptor 112. An acceptor for honour cannot be charged unless the When bill has at its maturity been presented to the drawee for pay- for honour ment, and has been dishonoured by him, and noted or protested may be for such dishonour 1. charged. for honour. 113. When a bill of exchange has been noted or protested Payment for non-payment, any person may pay the same for the honour of any party liable to pay the same 2, provided that the person so paying or his agent in that behalf3 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. payer for 114. Any person so paying is entitled to all the rights, in Right of respect of the bill, of the holder at the time of such payment, honour. 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 Drawee in case exchange, or in any indorsement thereon, the bill is not dis- of need. honoured until it has been dishonoured by such drawee 5. 116. A drawee in case of need may accept and pay the bill Acceptof exchange without previous protest. 1 Hoare v. Cazenove, 16 East, 391. 2 and the holder must receive the payment. The words or his agent in that behalf' were inserted by Act II of 1885, sec. 9. 4 Sec. 7. 5 The bill must therefore be, with reasonable diligence, presented to, or forwarded for presentment to, the drawee in case of need. ance and payment without protest. CHAPTER XII. OF COMPENSATION. Rules as to 117. The compensation payable in case of dishonour of a compensa promissory note, bill of exchange or cheque, by any party tion. 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 instru ment1, together with the expenses properly incurred in presenting, noting and protesting it; (6) 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 2. 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. 1 including interest as provided by secs. 79, 80. 2 These are (besides the expenses of protest) postage, customary commis sion and brokerage, and, when a redraft is drawn, the price of the stamp, Chalmers, 108. |