Negotiable Instruments Act Section 32 — Liability of maker of note and acceptor of bill

CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES.

General

Summary

Unless they have agreed otherwise, the person who makes a promissory note and the person who accepts a bill of exchange before it becomes due must pay the amount when it matures, exactly as the note or acceptance says. If a bill is accepted at or after its maturity date, the acceptor must pay the holder when asked. If they fail to pay as required, they must compensate any party to the note or bill for any loss or damage caused by that failure.

Official Text

In the absence of a contract to the contrary, the maker of a promissory note and the acceptor before maturity of a bill of exchange are bound to pay the amount thereof at maturity according to the apparent tenor of the note or acceptance respectively, and the acceptor of a bill of exchange at or after maturity is bound to pay the amount thereof to the holder on demand. In default of such payment as aforesaid, such maker or acceptor is bound to compensate any party to the note or bill for any loss or damage sustained by him and caused by such default.