BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Discharging of a negotiable instrument means that all the rights of action under it are completely extinguished and it ceases to be negotiated anymore. with intention to discharge him from the negotiable instrument, the latter is said to have discharged.

Detailed explanation-2: -90. (1) The maker, drawer, acceptor or indorser of a negotiable instrument is discharged from liability thereon when the person liable thereon as principal debtor becomes the holder thereof at or after its maturity.

Detailed explanation-3: -Section 82 of the Negotiable Instrument Act, 1881 says that the maker, acceptor or endorser of a negotiable instrument is discharged from liability thereon by cancellation, release or payment.

Detailed explanation-4: -Dishonour of a negotiable instrument means the loss of honour for the instrument on the part of the maker, drawee or acceptor, which renders the instrument unsuitable for the realization of the payment.

Detailed explanation-5: -A promissory note, bill of exchange or cheque is said to be dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque makes default in payment upon being duly required to pay the same.