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. There are also other modes of discharge of liability that co-exist as prescribed under various sections of the Act.

Detailed explanation-4: -Discharge of indorser’s liability.-Where the holder of a negotiable instrument, without the consent of the indorser, destroys or impairs the indorser’s remedy against a prior party, the indorser is discharged from liability to the holder to the same extent as if the instrument had been paid at maturity.

Detailed explanation-5: -Answer :If the holder of a bill of exchange allows the drawee more than 48 hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.