CAP. 19]
[s. 47 cont.]
Notice of dishonour
and effect of non-notice.
Rules as to notice of dishonour.
Bills of Exchange.
of recourse against the drawer and indorsers accrues to the holder.
48. Subject to the provisions of this Ordinance, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each indorser, and any drawer or indorser to whom such notice is not given is discharged: Provided that-
(a) where a bill is dishonoured by non-acceptance and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission shall not be prejudiced by the omission; (b) where a bill is dishonoured by non-acceptance and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by non-payment, unless the bill has in the meantime been accepted.
49. Notice of dishonour, in order to be valid and effectual, must be given in accordance with the following rules-
(a) the notice must be given by or on behalf of the holder or by or on behalf of an indorser who, at the time of giving it, is himself liable on the bill; (b) the notice may be given by an agent, either in his own name or in the name of any party entitled to give notice, whether that party is his principal or not;
(c) where the notice is given by or on behalf of the holder, it enures for the benefit of all subsequent holders and all prior indorsers who have a right of recourse against the party to whom it is given; (d) where the notice is given by or on behalf of an indorser entitled to give notice as hereinbefore provided, it enures for the benefit of the holder and all indorsers subsequent to the party to whom notice is given;
(e) the notice may be given in writing or by personal communication, and may be given in any terms which sufficiently identify the bill, and intimate that the bill has been dishonoured by non-acceptance or non-payment;
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