Negotiable Instruments Act Section 114 — Right of payer for honour

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

General

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.