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
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.
CAclubindia
