Negotiable Instruments Act, 1881

Section - 117 - Rules as to compensation

CHAPTER XII

OF COMPENSATION

Rules as to compensation.

117. The compensation payable in case of dishonour of a promissory note, bill of exchange or cheque, by any party liable to the holder or any indorsee, shall be determined by the following rules :-

(a)-The holder is entitled to the amount due upon the instrument, together with the expenses properly incurred in presenting, noting and protesting it;
(b)-When the person charged resides at a place different from that at which the instrument was payable, the holder is entitled to receive such sum at the current rate of exchange between the two places;
(c)-An indorser who, being liable, has paid the amount due on the same is entitled to the amount so paid with interest at [eighteen] per centum per annum from the date of payment until tender or realization thereof, together with all expenses caused by the dishonour and payment;
(d)-.... To read the full section download the app from Google Play store