CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Negotiable Instruments
A bill of exchange must be protested for dishonour within a specified time. The holder has the bill noted for protest by a notary before that time expires, and the formal protest is drawn up a few days later. Under the Negotiable Instruments Act, 1881, what is the legal effect?
The requirement is met. Under Section 104A, noting for protest before the specified time expires is sufficient, and the formal protest can be drawn up afterwards, relating back to the date of the noting. The holder need not complete the formal protest within the time limit.
- AThe requirement is satisfied, because noting before the time expires is sufficient and the formal protest may be extended later as of the date of the notingCorrect
- BThe requirement is not satisfied, because the formal protest itself must be completed within the specified time
- CThe requirement is satisfied only if the drawee agrees in writing to the later protest
- DThe requirement is not satisfied, because noting has no legal significance under the Act
Explanation
Section 104A provides that where a bill or note must be protested within a specified time, it is enough that it was noted for protest before the time expired. The formal protest can be extended later as of the date of the noting. The second option wrongly demands the full protest within the time.
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