Effect of Non-presentment for Acceptance

In the absence of presentment, where presentment is not dispensed with, not only the drawer and all endorsers are discharged as against the holder but also no action is maintainable in respect of the consideration. Where a suit is filed by the endorsees of a bill against the endorser and the drawer, and presentment for acceptance is not established, the plaintiff’s suit is liable to dismissal.

In the case of a bill of exchange payable at sight, the law does not necessarily require it to be presented by the holder to the drawee for acceptance. If the holder does not elect to present the instrument for acceptance but merely presents the same for payment and the drawee makes default, notice of dishonour to the drawer must be given under section 30 of the Act in order to make him liable.

Mayank Rai

Hi, My name is Mayank Rai. I found that Blogging is an easiest way to share your knowledge with everyone & learn something new from there.

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