CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Negotiable Instruments
A promissory note is dishonoured and the law requires it to be protested. Which statement about notice correctly reflects the Negotiable Instruments Act, 1881?
Where a note or bill must be protested, notice of protest is given in place of notice of dishonour, in the same manner and on the same conditions. The notary public who makes the protest is permitted to give that notice.
- ANotice of protest is given instead of notice of dishonour, in the same manner and subject to the same conditions, and may be given by the notary public who makes the protestCorrect
- BNotice of protest is given in addition to notice of dishonour, and only the holder personally may give it
- CNotice of protest is not required once the instrument has been noted
- DNotice of protest must be given by the drawee, not by the holder or notary
Explanation
Section 102 says that where protest is required, notice of protest replaces notice of dishonour, under the same manner and conditions, and the notary who makes the protest may give it. The option requiring both notices and holder-only service contradicts this.
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