NIA 32 — Liability of maker of note and acceptor of bill

Negotiable Instruments Act, 1881

Statutory 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.

2. Subs by the A.O. 1937, for “L.G”.

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