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Measure of damages
55. Where a bill is dishonoured the measure of damages, which shall be deemed to be liquidated damages, shall be as against parties to dis
(1) The holder may recover from any party liable on the
(a) The amount of the bill;
(b) Interest thereon in accordance with the stipu-
(c) The expenses of noting, and where the protest
(2) In the case of a bill which has been dishonoured
(3) Where by this Proclamation interest may be recovered
Proc. No. 11 of 1902.
56. (1) Where the holder of a bill payable to bearer Transferor by denegotiates it by delivery without indorsing it he is called a livery and transferee. transferor by delivery.
(2) A transferor by delivery is not liable on the instru
(3) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, being a holder for value, that the bill is what it purports to be, that he has a right to transfer it and that at the time of transfer he is not aware of any fact which renders it valueless.
DISCHARGE OF BILL.
57. (1) A bill is discharged by payment in due course or pro tanto by payment of part notified by indorsement on the course. bill if such payment be made by or on behalf of the drawee or acceptor.
Payment in due
Proc. No. 11 of 1902.
Banker paying demand draft where indorsement is forged.
Acceptor the holder at maturity.
(2) Subject to the provisions hereinafter contained, when a bill is paid by the drawer or an indorser it is not discharged; but
(a) Where a bill payable to or to the order of a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not re-issue the bill;
(b) Where a bill is paid by an indorser, or where a bill payable to drawer's order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent indorsements and again negotiate the bill.
(3) Where an accommodation bill is paid in due course by the party accommodated the bill is discharged.
58. When a bill payable to order on demand is drawn on a banker and the banker pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the indorsement of the payee or any subsequent indorsement was made by or under the authority of the person whose indorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such indorsement has been forged or made without authority: Provided such indorsement does not purport to be that of a person who is a customer of the banker at the branch on which the said bill is drawn.
59. When the acceptor of a bill is or becomes the holder of it at or after its maturity in his own right the bill is discharged.
60. (1) When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor the bill is discharged. The renunciation must be in writing on the bill unless the bill is delivered up to the acceptor.
(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at or after its maturity; but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation.
61. (1) Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged.
(2) In like manner any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent. In such case any indorser who would have had a right of recourse against the party whose signature is cancelled is also discharged.
(3) A cancellation made unintentionally or under a mistake or without the authority of the holder is inoperative; but where a bill or any signature thereon appears to have been cancelled the burden of proof lies on the party who
alleges that the cancellation was made unintentionally or under a mistake or without authority.
62. (1) Where a bill or acceptance is materially altered then the liability of all parties who were parties to the bill at the date of alteration and who did not assent to it must be regarded as if the alteration had not been made; but any party who has himself made, authorised or assented to the alteration and all subsequent indorsers are liable on the bill as altered.
(2) Amongst material alterations are the following: Any alteration of the date, the sum payable, the time of payment, the place of payment, and where a bill has been accepted generally the addition of a place of payment, without the acceptor's assent.
ACCEPTANCE AND PAYMENT FOR HONOUR.
63. (1) Where a bill of exchange has been protested for dishonour by non-acceptance or protested for better security and is not overdue, any person, not being a party already liable thereon, may with the consent of the holder intervene and accept the bill supra protest for the honour of any party liable thereon or for the honour of the person for whose account the bill is drawn.
(2) A bill may be accepted for honour for part only of the sum for which it is drawn.
(3) An acceptance for honour supra protest in order to be valid must
(2) Be written on the bill and indicate that it is an
(b) Be signed by the acceptor for honour.
(4) Where an acceptance for honour does not expressly state for whose honour it is made it is deemed to be an acceptance for the honour of the drawer.
(5) Where a bill payable after sight is accepted for honour its maturity is calculated from the date of noting for non-acceptance and not from the date of acceptance for honour.
Proc. No. 11 of 1902.
(2) The acceptor for honour is liable to the holder and to all parties to the bill subsequent to the party for whose honour he has accepted.
Alteration of bill.
Acceptance for honour supra protest.
64. (1) The acceptor for honour of a bill by accepting it engages that he will on due presentment pay the bill accord- acceptor for honour. ing to the tenor of his acceptance if it is not paid by the drawee, provided it has been duly presented for payment and protested for non-payment and that he receives notice of these facts.
65. (1) Where a dishonoured bill has been accepted for honour supra protest or contains a reference in case of need it acceptor for honour. must be protested for non-payment before it is presented for payment to the acceptor for honour or referee in case of need.
Proc. No. 11 of 1902.
Holder's rights to duplicate of lost bill.
(2) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment the bill must be presented to him not later than the day following its maturity; and where the address of the acceptor for honour is in some place other than the place where it was protested for nonpayment the bill must be posted or forwarded for presentment not later than the business day next following its maturity for presentment to him.
(3) Delay in presentment or non-presentment is excused by any circumstances which would excuse delay in presentment for payment or non-presentment for payment.
(4) When a bill of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by him.
66. (1) Where a bill has been protested for non-payment honour supra protest. any person, not being a party already liable thereon, may
intervene and pay it supra protest for the honour of any party liable thereon or for the honour of the person for whose account the bill is drawn.
(2) Where two or more persons offer to pay a bill for the honour of different parties the person whose payment will discharge most parties to the bill shall have the preference.
(3) Payment for honour supra protest in order to operate as such and not as a mere voluntary payment must be attested by a notarial act of honour, which may be appended to the protest or form an extension of it.
(4) The notarial act of honour must be founded on a declaration made by the payer for honour or his agent in that behalf, declaring his intention to pay the bill for honour and for whose honour he pays.
(5) Where a bill has been paid for honour all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is substituted for and succeeds to both the rights and duties of the holder as regards the party for whose honour he pays and all parties liable to that party.
(6) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is entitled to receive both the bill itself and the protest. If the holder do not on demand deliver them up he shall be liable to the payer for honour in damages.
(7) Where the holder of a bill refuses to receive payment supra protest he shall lose his right of recourse against any party who would have been discharged by such payment.
67. Where a bill has been lost before it is overdue the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving adequate security to the drawer if required to indemnify him against all persons whatever in case the bill alleged to have been lost shall be found again.
If the drawer on request as aforesaid refuses to give such duplicate bill he may be compelled to do so.
68. In any action or proceeding upon a bill other than a proceeding for provisional sentence the Court or a Judge may order that the loss or non-production of the instrument shall not be set up by way of defence, provided an indemnity be given to the satisfaction of the Court or Judge against the claims of any other person upon the instrument in question.
BILL IN A SET.
69. (1) Where a bill is drawn in a set, each part of a set being numbered and containing a reference to the other parts, the whole of the parts constitutes one bill.
(2) Where a holder of a set indorses two or more parts to different persons, he is liable on every such part, and every indorser subsequent to him is liable on the part he has himself indorsed as if the said parts were separate bills.
(3) Where two or more parts of a set are negotiated to different holders, in due course the holder whose title first accrues is as between such holders deemed the true owner of the bill; but nothing in this sub-section shall affect the rights of a person who in due course accepts or pays the part first presented to him.
(4) The acceptance may be written on any part, and it must be written on one part only.
If the drawee accepts more than one part, and such accepted parts get into the hands of different holders, in due course he is liable on every such part as if it were a separate bill.
(5) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder, in due course he is liable to the holder thereof.
(6) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or otherwise the whole bill is discharged.
(1) The validity of a bill as regards requisites in form is
Proc. No. 11 of 1902.
Action on lost bill.
CONFLICT OF LAWS.
70. Where a bill drawn in one country, colony or state is negotiated, accepted or payable in another the rights, duties, and conflict. liabilities of the parties thereto are determined as follows:
Rules as to set.
Rules where laws