Doubt-negotiable instruments act

This is a para from padhuka-law,IPCC,PAGE 2.4

ACCOMODATION BILL

(A) A bill is said to be a accomodation bill when it is made or drawn without consideration.

(B) It creates no obligation between the parties in absence of consideration.

(C) The purpose of making an accomodation B/E is to enable some party to the instrument raise money based on such B/E

 

My doubt

I understood what is an accomodation bill but the what is its use?...third point is my doubt..plz explain...if u can plz explain a little bit in hindi...thanks a lot

Replies (2)

It is used for mutual help of finance between two or more parties who in return bear the proportionate share of the discount charged by the bank according to the share of net recipts form such bill they have share...

always an accomodation bill is get discounted from he bank...

 

I am sorry par samajh nai aaya.....plz explain with an example...the question is how can money be raised if their is no consideration or obligation between parties

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details