Doubt-negotiable instruments act

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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


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