(4) Where in a bill payable to order the payee or indorsee (5) Where there are two or more indorsements on a bill, (6) An indorsement may be made in blank or special. It may also contain terms making it restrictive. Proc. No. 11 of 1902. Conditional in 31. Where a bill purports to be indorsed conditionally, the condition may be disregarded by the payer, and payment to dorsement. the indorsee is valid whether the condition has been fulfilled or not. 32. (1) An indorsement in blank specifies no indorsee and a bill so indorsed becomes payable to bearer. (2) A special indorsement specifies the person to whom or to whose order the bill is to be payable. (3) The provisions of this Proclamation relating to a payee apply with the necessary modifications to an indorsee under a special indorsement. (4) When a bill has been indorsed in blank, any holder may convert the blank indorsement into a special indorsement by writing above the indorser's signature a direction to pay the bill to or to the order of himself or some other person. Indorsement in blank and special indorsement. Restrictive indorse 33. (1) An indorsement is restrictive which prohibits the further negotiation of the bill, or which expresses that it is a ment. mere authority to deal with the bill as thereby directed and not a transfer of the ownership thereof, as for example, if a bill be indorsed "Pay D. only," or " Pay D. for the account of X." or "Pay D. or order for collection." (2) A restrictive indorsement gives the indorsee the right to receive payment of the bill and to sue any party thereto that his indorser could have sued, but gives him no power to transfer his rights as indorsee unless it expressly authorise him to do so. (3) Where a restrictive indorsement authorises further transfer, all subsequent indorsees take the bill with the same rights and subject to the same liabilities as the first indorsee under the restrictive indorsement. 34. (1) Where a bill is negotiable in its origin it continues to be negotiable until it has been (a) Restrictively indorsed; or (b) Discharged by payment or otherwise. (2) Where an overdue bill is negotiated it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had. Negotiation of overdue or dishonoured bill. Proc. No. 11 of 1902. Negotiation of bill to party already lia ble thereon. Rights of the holder. (3) A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section when it appears on the face of it to have been in circulation for an unreasonable length of time. What is an unreasonable length of time for this purpose is a question of fact. (4) Except where an indorsement bears date after the maturity of the bill, every negotiation is primâ facie deemed to have been effected before the bill was overdue. (5) Where a bill which is not overdue has been dishonoured, any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour: but nothing in this sub-section shall affect the rights of a holder in due course. 35. Where a bill is negotiated back to the drawer, or to a prior endorser, or to the acceptor, such party may, subject to the provisions of this Proclamation, re-issue and further negotiate the bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable. 36. The rights and powers of the holder of the bill are as follows:: (1) He may sue on the bill in his own name. (2) Where he is a holder in due course he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill. (3) Where the title is defective (a) If he negotiates the bill to a holder in due course that holder obtains a good and complete title to the bill; and (b) If he obtains payment of the bill the person who pays him in due course gets a valid discharge for the bill. GENERAL DUTIES OF THE HOLDER. When presentment 37. (1) Where a bill is payable after sight, presentment for acceptance is for acceptance is necessary in order to fix the maturity of the instrument. necessary. (2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment. (3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill. (4) Where the holder of a bill drawn payable elsewhere than at the place of business or residence of the drawee has not time with the exercise of reasonable diligence to present the bill for acceptance before presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and indorsers. Proc. No. 11 of 1902. Time for present 38. (1) Subject to the provisions of this Proclamation, when a bill payable after sight is negotiated, the holder must ing bill payable after either present it for acceptance or negotiate it within a reasonable time. (2) If he do not do so the drawer and all indorsers prior to that holder are discharged. (3) In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills and the facts of the particular case. 39. (1) A bill is duly presented for acceptance which is presented in accordance with the following rules: sight. Rules as to presentment for acceptance and excuses for (a) The presentment must be made by or on behalf of the non-presentment. (b) Where a bill is addressed to two or more drawees who (c) Where the drawee is dead presentment may be made (d) Where the drawee is insolvent or has assigned his (e) A presentment through the post office, if in due course, (2) Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by nonacceptance : (a) Where the drawee is dead, or insolvent, or is a fictitious person, or a person not having capacity to contract by bill; (b) Where after the exercise of reasonable diligence such presentment cannot be effected; (c) Where although the presentment has been irregular acceptance has been refused on some other ground; (3) The fact that the holder has reason to believe that the bill on presentment will be dishonoured does not excuse presentment. 40. When a bill is duly presented for acceptance and it is not accepted within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he do Non-acceptance not the holder shall lose his right of recourse against the drawer 41. (1) A bill is dishonoured by non-acceptance :- (6) When presentment for acceptance is excused and the (2) Subject to the provisions of this Proclamation, when a bill is dishonoured by non-acceptance, an immediate right of récourse against the drawer and indorsers accrues to the holder, and no presentment for payment is necessary. 42. (1) The holder of a bill may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance may treat the bill as dishonoured by non-acceptance. (2) Where a qualified acceptance is taken and the drawer or an indorser has not expressly or impliedly authorised the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or indorser is discharged from his liability on the bill. The provisions of this sub-section do not apply to a partial acceptance whereof due notice has been given. Where a bill has been accepted as to part, it must be protested as to the balance. (3) When a drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto. 43. Subject to the provisions of this Proclamation, a bill must be duly presented for payment. If it be not so presented the drawer and indorsers shall be discharged. A bill is duly presented for payment which is presented in accordance with the following rules: (1) Where the bill is not payable on demand presentment must be made on the day it falls due. (2) Where the bill is payable on demand, then subject to the provisions of this Proclamation presentment must be made within a reasonable time after its issue in order to render the drawer liable, and within a reasonable time after its indorsement in order to render an indorser liable. In determining what is a reasonable time regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case. (3) Presentment must be made by the holder, or by some person authorised to receive payment on his behalf at a reasonable hour on a business day, at the proper place as hereinafter defined, either to the person designated by the bill as payer or to some person authorised to pay or refuse payment on his behalf, if with the exercise of reasonable diligence such person (4) A bill is presented at the proper place : (a) Where a place of payment is specified in the (b) Where no place of payment is specified, but the (c) Where no place of payment is specified, and no (6) Where a bill is drawn upon or accepted by two or (7) Where the drawee or acceptor of a bill is dead and no (8) A presentment through the Post Office, if in due course, 44. (1) Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate presentment must be made with reasonable diligence. (2) Presentment for payment is dispensed with- (c) As regards the drawer where the drawee or acceptor is () As regards an indorser where the bill was accepted or Proc. No. 11 of 1902. Excuses for delay or non-presentment for payment. |
