Presentment of Negotiable

Presentment of Negotiable

A drawee has no liability regarding any bill addressed to him for acceptance or payment until he accepts the bill. He needs to write the word ‘accepted’ on the bill and sign his name below in order to complete the acceptance.

By accepting the bill the drawee gives his assent to the order of the drawer. Thus, the primary liability on a bill is of the acceptor.

The acceptance can be either general or qualified. As a rule, acceptance needs to be general. General acceptance is absolute. A qualified acceptance is made subject to some condition or qualification.

It thus varies the effect of the bill. The holder of a bill may refuse to take a qualified acceptance. In this case, he may treat the bill as dishonoured by non-acceptance and sue the drawer.

Acceptance for Honour : Any person who is not already liable on the bill, with the holder’s consent may accept the bill for honour of any party thereto, by writing on the bill when the bill has been noted or protested for non-acceptance or better security.This person is the Acceptor for Honour. He is liable to pay only after the proper presentment of the bill on maturity to the drawee for payment and he refuses to pay and the bill is noted or protested for non-payment.

All kinds of bills of exchange do not require a presentment for acceptance. Bills payable on demand or on a fixed date do not require this. However, the following bills require presentment for acceptance in the absence of which the parties to it will not be liable on it:

1. Bill payable after sight in order to fix the maturity of the bills.
2. A bill that consists of an express stipulation that presentment for acceptance is necessary before presentment for payment.

As per section 15, the presentment for acceptance shall be made to the drawee or his duly authorized agent, in case of drawee’s death to his legal representative and in case of his insolvency to his official receiver or assigner.We shall present the bill to the following persons:

1. Drawee or his duly authorized agent.
2. In case of more than one drawee, to all the drawees.
3. In the case of drawee’s death, to his legal representative.
4. Where the drawee becomes insolvent, to his official receiver.
5. When the original drawee refuses to accept the bill, to a drawee in case of need.
6. The acceptor for honour.

The presentment for acceptance shall be done before maturity, within a reasonable time after it is drawn, on a business day during business hours at a business place or residence of the drawee.