BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Conclusion. A negotiable instrument is supposed to be dishonored when the drawee declined to receive it or to make sum upon it. In both cases the holder is entitled to sue in contradiction of the drawer and endorser. Notice of dishonor is given to all parties except maker of note, acceptor of bill or drawee of cheque.

Detailed explanation-2: -8. “Holder”.-The “holder” of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.

Detailed explanation-3: -8) As per Section 90, when the acceptor of bill of exchange or maker of promissory note becomes holder on or after maturity, the instrument is discharged. An instrument is dishonored by non-payment when the party primarily liable, makes default in payment.