Section 113 NI Act: Payment for honour
Negotiable Instruments Act, 1881
Section 113 NI Act at a Glance
Section 113 NI Act allows any person to pay a bill of exchange for the honour of a liable party after the bill is noted or protested for non-payment, if a notary public first records a declaration naming that party.
Section 113 NI Act Bare Act Text
113. Payment for honour.
When a bill of exchange has been noted or protested for non-payment, any person may pay the same for the honour of any party liable to pay the same: provided that the person so paying or his agent in that behalf has previously declared before a notary public the party for whose honour he pays, and that such declaration has been recorded by such notary public.
Amendments to this section
- Ins. by Act 2 of 1885, s. 9.
Section 113 NI Act in Simple Words
Section 113 NI Act governs when and how a bill of exchange may be paid for honour.
When a bill of exchange has been noted or protested for non-payment, Section 113 NI Act permits any person to pay the bill for the honour of any party who is liable to pay the bill.
However, the proviso to Section 113 NI Act sets a mandatory prior step. Before making the payment, the person paying (or that person's agent in that behalf) must declare before a notary public the party for whose honour the payment is being made, and the notary public must record that declaration. Act 2 of 1885 inserted the words "or his agent in that behalf".
When Section 113 NI Act Applies
- A bill of exchange has been noted or protested for non-payment.
- Any person steps in to pay the bill for the honour of a party liable to pay the bill.
- Before paying, the person paying (or that person's agent in that behalf) declares before a notary public the party for whose honour the payment is made.
- The notary public records that declaration.
Example of Section 113 NI Act
FAQs on Section 113 NI Act
What is Section 113 NI Act?▼
Section 113 NI Act sets out the rule for paying a bill of exchange for the honour of a party liable on it after the bill has been noted or protested for non-payment. It requires the payer or the payer's agent to first declare before a notary public the party for whose honour the payment is made, and requires the notary public to record that declaration.
Who can make a payment for honour under Section 113 NI Act?▼
Any person. Section 113 NI Act states that when a bill of exchange has been noted or protested for non-payment, any person may pay the bill for the honour of any party liable to pay it.
Can a person make a payment for honour without going before a notary public under Section 113 NI Act?▼
No. The proviso to Section 113 NI Act requires that the person paying, or that person's agent in that behalf, has previously declared before a notary public the party for whose honour the payment is made, and that the notary public has recorded that declaration.
Can an agent make the declaration before the notary public under Section 113 NI Act?▼
Yes. The proviso to Section 113 NI Act allows either the person paying or that person's agent in that behalf to make the prior declaration before the notary public.
When must the declaration before the notary public be made under Section 113 NI Act?▼
Before the payment for honour is made. Section 113 NI Act requires that the payer or the payer's agent has previously declared before a notary public the party for whose honour the payment is made, and that the notary public has recorded it.
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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·