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DISCHARGE FROM LIABILITY[1].
QUESTION BANK.
Q.1. When will a person be discharged from his liability on notes, bills and cheques?
Q.2. Explain the different modes of discharge from liability on negotiable instruments.
Q.3. When the parting to the negotiable instrument is discharged from liability?
SHORT NOTES.
- Discharge by cancellation.
- Discharge by delay in presenting the cheque.
SYNOPSIS.
DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUE (Ss. 82 TO 90):-
- By cancellation (S. 82 (a)):-
- By release (S. 82 (b)):-
3) By payment (S. 82 (c)):-
4) By allowing more than 48 hours to accept (S. 83):-
5) by qualified acceptance (S. 86):-
6) By delay in presentating cheque (S. 84):-
7) By material alteration (S. 87):-
8) By withholding (S. 90):-
DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
(Ss. 82 TO 90):-
Ss. 82 to 90 deals with the discharge of parties from liability on a negotiable instrument. A party is said to be discharged on the instrument when his liability under the instrument comes to an end. The maker, acceptor or endorsers are discharged from liability in the following ways:-
1. By cancellation[2] (S. 82 (a)):-
Where a bill is intentionally cancelled by the holder or his agent and the cancellation is apparent on the face of the instrument, the bill is discharged.
2. By release[3] (S. 82 (b)):-
The holder may agree to release any of the parties from liability by a separate agreement or by conduct (which has the effect of discharging a party from his liabilities). The effect of release is the same as that of cancellation.
3) By payment (S. 82 (c)):-
All parties to an instrument are discharged from liability when the amount due on the instrument is paid.
4) By allowing more than 48 hours to accept[4] (S. 83):-
When the bill is not returned to the holder as duly accepted within 48 hours (exclusive of the holiday), the duty of the holder is to treat it as discharged by non-acceptance.
5) By qualified acceptance[5] (S. 86):-
The holder of a bill who presents it for acceptance should insist that the bill be accepted without any condition or qualification. If the holder of a bill of exchange acquires in a qualified acceptance, or one limited to part of the sum mentioned in the bill, or which substitutes a different place or time for payment, or which, where the drawees are not partners, is not signed by all the drawers, all previous parties whose consent is not obtained to such acceptance are discharged as against the holder and those claiming under him, unless on notice given by the holder, they assent to such acceptance. ‘Conditional Acceptance’ is one that attaches some condition to the payment.
6) By delay in presentation cheque (S. 84):-
It is the duty of the holder of a cheque to present it for payment within a reasonable time of its issue.
The reasonable time for the presentment of the cheque under S. 138 is six months from its date.
7) By material alteration[6] (S. 87):-
Any material alteration of a negotiable instrument renders the same ‘void’ against anyone who was a party thereto at the time of making such alteration and does not consent thereto.
8) By withholding[7] (S. 90):-
If a negotiated Bill of Exchange is held by the acceptor in his own right at or after maturity, all rights of action thereon are extinguished.
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[1] जबाबदारीतून मुक्तता. [उत्तरदायित्व से मुक्ति।]
[2] रद्द करण्याने. [निरस्तीकरण द्वारा।]
[3] सोडून देणे. [छोड़ देना]
[4] स्विकृतीसाठी ४८ तासापेक्षा जादा वेळ देण्याने. [अनुमोदन के लिए 48 घंटे से अधिक की अनुमति।]
[5] अटीवरती स्विकृती देण्याने [ सशर्त स्वीकृति देकर]
[6] महत्त्वाचे बदल केल्याने. [महत्वपूर्ण परिवर्तन करके।]
[7] स्वतःकडे राखून ठेवल्याने. [अपने तक ही सीमित रखकर।]