Page 1 : What is a Dishonour of negotiable instrument?, , Dishonour of negotiable instrument means loss of honour or respect for the instrument in, question on the part of the maker, drawee, or acceptor, as the case may be, which eventually, results in non-realization of payment due on the instrument., , , , Dishonour by non-acceptance:, , Any type of negotiable instruments, i.e., bill of exchange, promissory note, or cheque may be, dishonoured by non-payment by the drawee/acceptor thereof. But a bill may also be dishonoured, by non-acceptance because bill of exchange is the only negotiable instrument which requires its, presentment for acceptance and non-acceptance thereof, can amount to dishonour., , When is a bill said to be dishonoured by Non-Acceptance?, A bill is said to be dishonoured by non-acceptance in the following circumstances., , 1. When the drawee or one of the several drawees, not being partners, commit default in, acceptance upon being duly required to accept the bill. In this regard Section 63 expressly, provides that the holder must, if so required by the drawee of a bill of exchange, presented to for acceptance, allow the drawee forty-eight hours (exclusive of public, holidays) to consider whether he will accept it., , Where presentment is required and the bill remains unrepresented., , Where the drawee is incompetent to enter into a valid contract., , Where the bill is given a qualified acceptance., , If the drawee is a fictitious person., , If the drawee cannot be found even after reasonable search., , ‘Where the drawee has either become insolvent or is dead and the holder does not present, the bill to the assignee or legal representative of the insolvent or deceased drawee., , MOawEYN, , How is a party to a negotiable instrument discharged?, ‘A party to a negotiable instrument is discharged in the following ways, , By cancellation of the name of a party to the instruments, by release of any party to the instruments, , by payments, , by allowing drawee more than 48 hours to accept, , by delay in presenting a cheque for payment, , by payment in due course of a cheque (payable to order), by taking qualified acceptance, , by non-presentment for acceptance of a bill of exchange, ‘+ by operation of law, , «by material alteration, , Dishonour of a Negotiable Instrument