Negotiable Instruments Act Section 112 — When acceptor for honour may be charged

CHAPTER XI OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED

General

Summary

A person who has accepted a bill of exchange to protect the honour of the drawee can only be held responsible for payment if, when the bill becomes due, it is first presented to the original drawee for payment. If that drawee refuses to pay, the bill must be officially recorded as dishonoured, either by noting or protesting the non-payment. Only after these steps are completed can the acceptor for honour be asked to pay.

Official Text

An acceptor for honour cannot be charged unless the bill has at its maturity been presented to the drawee for payment, and has been dishonoured by him, and noted or protested for such dishonour.