· 1864 ORDINANCE No. 9 OF 1885.
Bills of Exchange.
(4. ) Except where an indorsement bears date after the maturity of
the bill, every negotiation is prima 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.
Negotiation 37. Where a bill is negotiated back to the drawer, or to a prior
of bill to
party already indorser or to the acceptor, such party may, subject to the provisions of
liable thereon.
this Ordinance, 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.
Rights of the 38. The rights and powers of the holder of a bill are as follows :
holder.
( 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 his 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 pre 39. ( 1. ) Where a bill is payable after sight, presentment for accept
sentment for
acceptance is ance 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 resi
dence or place of business of the drawee it must be presented for accept
ance 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