Discharge from liability
Chapter 7: Of discharge from liability on notes, bills and cheques
The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon—
(a) by cancellation.—to a holder thereof who cancels such acceptor's or indorser’s name with intent to discharge him, and to all parties claiming under such holder;
(b) by release.—to a holder thereof who otherwise discharges such maker, acceptor or indorser, and to all parties deriving title under such holder after notice of such discharge;
(c) by payment.—to all parties thereto, if the instrument is payable to bearer, or has been indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount due thereon.
The Negotiable Instruments Act, 1881 (Act No. 26 of 1881). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 83Discharge by allowing drawee more than forty-eight hours to accept
- 84When cheque not duly presented and drawer damaged thereby
- 85Cheque payable to order
- 85ADrafts drawn by one branch of a bank on another payable to order
- 86Parties not consenting discharged by qualified or limited acceptance
- 87Effect of material alteration