ORDINANCE No. 9 or 1885 . 1869
Bills of Exchange.
48. Subject to the provisions of this Ordinance, when a bill has Notice of and
dishonour
been dishonoured by non-acceptance or by non -payment, notice of effect
notice.of non
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
( 1. ) 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.
(2. ) 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 shall in the meantime have been accepted .
49. Notice of dishonour in order to be valid and effectual must be Rules as to
notice of
― dishonour.
given in accordance with the following rules :
( 1. ) 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 .
(2. ) Notice of dishonour 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 be his principal or not.
(3. ) 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.
(4. ) Where notice is given by or on behalf of an indorser entitled
to give notice as herein-before provided , it enures for
the benefit of the holder and all indorsers subsequent to
the party to whom notice is given.
( 5. ) 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.
6. ) The return of a dishonoured bill to the drawer or an
indorser is, in point of form, deemed a sufficient notice
of dishonour.