202
No. 3 of 1885.
BILLS OF EXCHANGE.
Negotiation of bill to party already liable thereon.
Rights and powers of holder.
When presentment for acceptance is necessary.
37. Where a bill is negotiated back to the drawer, or to a prior indorser, or to the acceptor, such party may, subject to the provisions of 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.
38. The rights and powers of the holder of a bill are as follows:-
(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.
39.—(1) Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument.
(2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the place of business or residence of the drawee, it must be presented for acceptance 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 presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and indorsers.
202
No. 3 of 1885.
BILLS OF EXCHANGE.
Negotiation of bill to party already liable thereon.
Rights and powers of holder.
When presentment for accept- ance is necessary.
37. Where a bill is negotiated back to the drawer, or to a prior indorser, or to the acceptor, such party may, subject to the provisions of 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.
38. The rights and powers of the holder of a bill are as follows:-
(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 them- selves, 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.
39.—(1) Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the
instrument.
(2) Where a bill expressly stipulates that it shall be pre- sented for acceptance, or where a bill is drawn payable elsewhere than at the place of business or residence of the drawee, it` must be presented for acceptance 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 presenting it for payment on the day that it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and indorsers.
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