Section 33 NI Act: Only drawee can be acceptor except in need or for honour

Negotiable Instruments Act, 1881

Section 33 NI Act at a Glance

Section 33 NI Act restricts who can be bound by accepting a bill of exchange. Only the drawee, all or some of several drawees, a person named as a drawee in case of need, or an acceptor for honour can be bound.

Section 33 NI Act Bare Act Text

33. Only drawee can be acceptor except in need or for honour.

No person except the drawee of a bill exchange, or all or some of several drawees, or a person named therein as a drawee in case of need, or an acceptor for honour, can bind himself by an acceptance.

Section 33 NI Act in Simple Words

Section 33 NI Act lays down the rule on who has the capacity to accept a bill of exchange and become bound by that acceptance. Section 33 NI Act states that no person outside four specified categories can become bound by an acceptance.

The four categories of persons who can become bound by an acceptance under Section 33 NI Act are: first, the sole drawee of a bill of exchange; second, all or some of several drawees where the bill is addressed to more than one drawee; third, a person named in the bill as a drawee in case of need; and fourth, an acceptor for honour. Any acceptance by a stranger who does not fall into one of these four categories does not bind that person by an acceptance. The official text prints "a bill exchange"; the sense is "a bill of exchange".

When Section 33 NI Act Applies

  • The instrument is a bill of exchange.
  • A person can become bound by an acceptance only if that person is the drawee of the bill of exchange, or all or some of several drawees.
  • Alternatively, a person named in the bill as a drawee in case of need, or an acceptor for honour, can become bound by an acceptance.
  • No other person can become bound by an acceptance.

Example of Section 33 NI Act

Sarita in Meerut draws a bill of exchange for ₹75,000 addressed solely to Farida in Cuttack as the drawee, and the bill names no drawee in case of need. Before the bill is presented to Farida, Raghav, who is not named on the bill and is not acting as an acceptor for honour, writes an acceptance across the bill. Under Section 33 NI Act, because Raghav is neither the drawee, nor one of several drawees, nor a person named in the bill as a drawee in case of need, nor an acceptor for honour, Raghav cannot become bound by that acceptance.

FAQs on Section 33 NI Act

What is Section 33 NI Act?▼

Section 33 NI Act specifies the only persons who can become bound by accepting a bill of exchange. Under Section 33 NI Act, no person can become bound by an acceptance except the drawee, all or some of several drawees, a person named in the bill as a drawee in case of need, or an acceptor for honour.

Can a stranger to a bill of exchange become bound by accepting it under Section 33 NI Act?▼

No. Unless the person is the drawee, one of several drawees, a person named in the bill as a drawee in case of need, or an acceptor for honour, Section 33 NI Act states that the person cannot become bound by an acceptance.

Does Section 33 NI Act require all drawees to accept when a bill has several drawees?▼

No. Section 33 NI Act states that all or some of several drawees of a bill of exchange can become bound by an acceptance.

Can a person named in the bill as a drawee in case of need become bound by an acceptance under Section 33 NI Act?▼

Yes. Section 33 NI Act expressly includes a person named in the bill as a drawee in case of need, as well as an acceptor for honour, among those who can become bound by an acceptance.

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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) ·