BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If a bill is dishonored by non-payment at its maturity, the holder, after performing all acts necessary to the exercise and preservation of his rights on the bill, is entitled to exercise his right of recourse against the endorser, the drawer, and any other person liable on the bill.

Detailed explanation-2: -Dishonour by non-payment. 92. 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.

Detailed explanation-3: -What Is the Effect of a Notice of Dishonor? The effect of the notice of dishonor, when properly given, and when it is followed by a protest when a protest is requisite, will render the drawer and endorsers of a bill or the endorsers of a note liable to the holder.

Detailed explanation-4: -As per Section 42 of the Bills of Exchange Act, 1882, when a bill is duly presented for acceptance and is not accepted within the customary time, the person presenting it must treat it as dishonored by non-acceptance. If he does not, the holder shall lose his right of recourse against the drawer and indorses.