Section 110 NI Act: Acceptance not specifying for whose honour it is made

Negotiable Instruments Act, 1881

Section 110 NI Act at a Glance

Section 110 NI Act provides a default rule when an acceptance for honour does not name the person for whose honour it is made. In that case, the law treats the acceptance as made for the honour of the drawer.

Section 110 NI Act Bare Act Text

110. Acceptance not specifying for whose honour it is made.

Where the acceptance does not express for whose honour it is made it shall be deemed to be made for the honour of the drawer.

Section 110 NI Act in Simple Words

Section 110 NI Act sets a rule of construction for an acceptance for honour that does not name a specific party.

Where the acceptance does not express for whose honour it is made, Section 110 NI Act states that the acceptance is deemed to be made for the honour of the drawer.

When Section 110 NI Act Applies

  • A bill of exchange is accepted for honour.
  • The acceptance does not express for whose honour it is made.
  • The acceptance is deemed by law to be made for the honour of the drawer.

Example of Section 110 NI Act

Rahul draws a bill of exchange for ₹50,000 in Kozhikode payable to Lalitha, who indorses it to Mohan. After the bill is protested for non-acceptance, Ajay, with Mohan's consent, writes on the bill, under Ajay's hand, a declaration accepting the protested bill under protest for honour, without stating the name of any party. Under Section 110 NI Act, because Ajay's acceptance does not express for whose honour it is made, the acceptance is deemed to be made for the honour of Rahul, the drawer.

FAQs on Section 110 NI Act

What is Section 110 NI Act?▼

Section 110 NI Act states the legal effect of an acceptance for honour that does not name the party for whose honour it is given. Where the acceptance does not express for whose honour it is made, the law deems it to be made for the honour of the drawer.

For whose honour is an unspecified acceptance for honour treated as made under Section 110 NI Act?▼

The drawer. Section 110 NI Act provides that when an acceptance does not express for whose honour it is made, it is deemed to be made for the honour of the drawer.

Does Section 110 NI Act apply if the acceptor names a specific indorser on the bill?▼

No. Section 110 NI Act applies only where the acceptance does not express for whose honour it is made.

Why does it matter for whose honour a bill is accepted under Section 110 NI Act?▼

Section 111 NI Act turns on it. The acceptor for honour is bound to all parties subsequent to the party for whose honour the bill is accepted.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·