Negotiable Instruments Act Section 114 — Right of payer for honour

Summary

A person who pays a bill on behalf of someone else to protect that person's honour steps into the legal position of the bill's holder at the time of payment. This means they gain the same rights over the bill that the holder had. They can also recover from the person they honoured the full amount paid, plus interest and any reasonable expenses spent in making the payment.

Official Text

Any person so paying is entitled to all the rights in respect of the bill, of the holder at the time of such payment, and may recover from the party for whose honour he pays all sums so paid, with interest thereon and with all expenses properly incurred in making such payment.

Related Judgments

• OFFICIAL RECEIVER, KANPUR AND ANOTHER vs ABDUL SHAKUR AND OTHERS — Supreme Court of India (1964)
• ROHITBHAI JIVANLAL PATEL vs STATE OF GUJARAT & ANR — Supreme Court of India (2019)
• HITEN P. DALAL vs BRATINDRANATH BANERJEE — Supreme Court of India (2001)
• The Hon’ble Justice Shampa Dutt (Paul); CRA 428 of 2015; Environ Energ vs The State of West Bengal & Ors., For Amicas Curiae, : Ms. Rita Dutta — Calcutta High Court (Kolkata Principal Seat) (2022)