Negotiable Instruments Act Section 115 — Drawee in case of need

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

General

Summary

If a bill of exchange names a specific person as a "drawee in case of need," that person acts as a backup. The bill is only considered dishonoured after this backup drawee has also refused to pay. Until that backup drawee has been given the chance and has refused, the bill is not treated as dishonoured.

Official Text

Where a drawee in case of need is named in a bill of exchange, or in any indorsement thereon, the bill is not dishonoured until it has been dishonoured by such drawee.