NI Act help

IPCC 909 views 2 replies

Sunshine

Helping All

10575 Points Posted on 01 October 2010

hie...m not able to understand a topic so someone plz help me with it.....

The cases where notice of dishonour is not required....

1.when the notice of dishonour have been dispensed with by a party.

2. where the drawer of the cheque has countermanded payment,notice to the drawer is not required..

i am not able to understand the meaning of these 2 lines...someone plz explain with examples in simple language..

regards,

sneha

Replies (2)

* Krishna *

CA Student

6149 Points Posted on 01 October 2010

When it is dispensed with by the Party entitled thereto: Where the Drawer tells the Holder that he will see whether or not the bill is paid by the acceptor on maturity, in such case, notice of dishonor is not required. In 2nd point, countermanded means cancelling officially..

Faiz Ahmed

Article Trainee

1731 Points Posted on 01 October 2010

This Sec 98 point no.1 can be easily understood by applying the logic of facultative endorsement.

Facultative endorsement means where endorser revokes some rights or increases his liabilty under an instrument. E.g. " Pay to Sneha or order--- notice of dishonour waived".

In above case of endorsement we see notice of dishonour is not necessary.

As far as point 2 is concerned its self explanatory. See in that line, when the party revokes(countermand) the paying of amount by another party. So in that it becomes obvious not to furnish any notice when the liabilty itself is abandoned.