Section 34 NI Act: Acceptance by several drawees not partners

Negotiable Instruments Act, 1881

Section 34 NI Act at a Glance

Section 34 NI Act governs acceptance of a bill of exchange addressed to several drawees who are not partners. Each drawee can accept the bill on that drawee's own behalf, but cannot accept it for another drawee without that other drawee's authority.

Section 34 NI Act Bare Act Text

34. Acceptance by several drawees not partners.

Where there are several drawees of a bill of exchange who are not partners, each of them can accept it for himself, but none of them can accept it for another without his authority.

Section 34 NI Act in Simple Words

Section 34 NI Act explains how a bill of exchange may be accepted when it is addressed to several drawees who are not partners.

Under Section 34 NI Act, where there are several drawees of a bill of exchange who are not partners, each drawee can accept the bill on that drawee's own behalf. However, none of the drawees can accept the bill for another drawee unless that other drawee has given authority to do so.

When Section 34 NI Act Applies

  • A bill of exchange is addressed to several drawees.
  • Those drawees are not partners.
  • Each drawee can accept the bill for that drawee alone.
  • No drawee can accept the bill for another drawee without that other drawee's authority.

Example of Section 34 NI Act

Bilal in Aurangabad draws a bill of exchange for ₹60,000 addressed jointly to Kunal and Deepak, who are two independent traders and not partners. Kunal signs an acceptance on the bill purporting to accept for both Kunal and Deepak, even though Deepak has not given Kunal authority to accept on Deepak's behalf. Under Section 34 NI Act, Kunal can accept the bill for Kunal alone, and the acceptance does not bind Deepak because Kunal had no authority from Deepak.

FAQs on Section 34 NI Act

What is Section 34 NI Act?▼

Section 34 NI Act governs how a bill of exchange is accepted when it is addressed to several drawees who are not partners. Each drawee can accept the bill on that drawee's own behalf, but none of the drawees can accept it for another drawee without that other drawee's authority.

Can one drawee who is not a partner accept a bill of exchange on behalf of another drawee under Section 34 NI Act?▼

Only with authority. Under Section 34 NI Act, none of several drawees who are not partners can accept a bill of exchange for another without that other drawee's authority.

Does Section 34 NI Act allow a single drawee who is not a partner to accept a bill for that drawee alone?▼

Yes. Section 34 NI Act states that where there are several drawees of a bill of exchange who are not partners, each of the drawees can accept the bill on that drawee's own behalf.

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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) ·