Section 116 NI Act: Acceptance and payment without protest
Negotiable Instruments Act, 1881
Section 116 NI Act at a Glance
Section 116 NI Act permits a drawee in case of need to accept and pay a bill of exchange without any previous protest.
Section 116 NI Act Bare Act Text
116. Acceptance and payment without protest.
A drawee in case of need may accept and pay the bill of exchange without previous protest.
Section 116 NI Act in Simple Words
Section 116 NI Act states that a drawee in case of need may accept and pay a bill of exchange without previous protest. Because Section 116 NI Act uses the word 'may', it permits the drawee in case of need to accept and pay the bill even when no protest has taken place beforehand.
When Section 116 NI Act Applies
- There is a drawee in case of need for a bill of exchange.
- The drawee in case of need may accept and pay the bill of exchange without previous protest.
Example of Section 116 NI Act
FAQs on Section 116 NI Act
What is Section 116 NI Act?▼
Section 116 NI Act deals with acceptance and payment by a drawee in case of need. It states that a drawee in case of need may accept and pay a bill of exchange without previous protest.
Is a previous protest required before a drawee in case of need accepts and pays a bill of exchange?▼
No. Under Section 116 NI Act, a drawee in case of need may accept and pay the bill of exchange without previous protest.
Does Section 116 NI Act make acceptance and payment compulsory for a drawee in case of need?▼
No. Section 116 NI Act uses the word 'may', which permits a drawee in case of need to accept and pay the bill of exchange without previous protest rather than compelling it.
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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·