Negotiable Instruments Act Section 90 — Extinguishment of rights of action on bill in acceptor's hands

CHAPTER VII OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES

General

Summary

If a bill of exchange has been passed between people and later comes back into the hands of the person who accepted it (the acceptor) at or after its due date, and they hold it as their own, then all legal rights to take action on that bill are completely ended. In simple terms, once the acceptor owns the bill again after it is due, no one can sue or claim anything based on that bill anymore.

Official Text

If a bill of exchange which has been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action thereon are extinguished.