Non-acceptance is a valid mode of dishonour for :
Bill of Exchange
Under Section 91 of the Negotiable Instruments Act, 1881, a bill of exchange is dishonoured by non-acceptance when the drawee, or one of several drawees, makes default in acceptance on being duly required to accept it.
Only a bill of exchange requires acceptance by the drawee, so only it can be dishonoured by non-acceptance as well as by non-payment.
A promissory note is made by the maker himself and needs no acceptance; a cheque and a bank draft are payable on demand by a bank and are dishonoured only by non-payment.
Hence, the answer is Bill of Exchange.
Similar Questions
The following one is absolutely essential for a special crossing :
Days of grace under NI Act, 1881 applicable to :
The word ‘negotiation’ was defined in the NI Act, 1881 under Section:
Which section of the NI Act, 1881 justifies the dishonour of the cheque ?
Important Questions from Negotiable instrument Act, 1881
- Which of the following is not a negotiable instrument?
- Match List – I with List – II and select the correct answer using the codes given below :
List – I List – II i. Inchoate stamped instrument a. Union Bank of India Vs. Ankur Corp. ii. Liability of acceptor of a negotiable instrument b. Section 31 of the Negotiable Instrument Act iii. Liability of an endorser c. Section 35 of the Negotiable Instrument Act. iv. Liability of the drawee of a cheque. d. Section 20 of the Negotiable Instrument Act.
Codes : - Which of the following statements are correct ? Answer using codes given below :
In order that a person can be called a holder in due course, he must show :
i. that he is the drawer of the negotiable instrument.
ii. that he has obtained it without consideration.
iii. that he has obtained it before the maturity of the negotiable instrument.
iv. that he has obtained the negotiable instrument in good faith.
Codes : - Read Assertion (A) and Reason (R) and answer using code below :
Assertion (A) : Where a bill is unintentionally cancelled by the holder or his agent and the cancellation is not apparent thereon, the bill is discharged.
Reason (R) : Above principle is laid down in Section 82 of the Negotiable Instruments Act.
Code : - Which one of the following statements is true ?
