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Bills of exchange, Notes : 2, , A bill of exchange, according to Section 5 of NI Act, is an instrument that is:, in writing;, , e containing an unconditional order;, , ordering a certain person called drawee;, , e to pay certain money only;, , e ordering payment to certain person or to the order of certain person or to the bearer of the instrument., , Common Rules regarding Bills of Exchange (Sections 132 and 133), , i. The bill of exchange is drawn in sets or parts; all the parts put together make a set and the whole set, constitutes only one bill., , ii. The payment made on one part extinguishes the whole bill., , iii. Each part of the bill in a set shall be numbered and contains a provision that it shall continue to be, payable only so long as the other parts remain unpaid., , iv. The drawer has to sign each part of the bill and deliver all the parts., v. Only one part needs to be stamped. Similarly, one part only needs to be accepted., vi. In case a person accepts or endorses different parts of the bill in favour of different persons, he and the, , subsequent endorsers of each part are liable for such parts as if it were a separate bill., , Acceptance of a bill is an indication by the drawee of his assent to pay to the order of the drawer. Oral acceptance, is not considered an acceptance., , The Essentials of Acceptance, , Acceptance must be written across the face or on the back of the bill and signed by the drawee. The process of, acceptance is completed only when the accepted bill is delivered to the holder., , Who can accept (Section 33), Any of the following can accept a bill:, The drawee of a bill, All or some of the several drawees, if the bill is addressed to more than one drawee, A person named in the bill as drawee in case of need, An acceptor for honour, , An agent of the persons listed above.

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Presentment refers to the showing of an instrument to the drawee, acceptor, or maker for acceptance, sight, or, payment., , Presentment of Bill of Exchange for Acceptance (Section 61), , Presentment for acceptance is necessary in the following types of bills:, A bill of exchange payable after sight, , A bill where there is an explicit stipulation that it shall be presented for acceptance., , Presentment: By Whom and To Whom, A bill must be presented by a holder or his authorized agent. And it must be presented to:, The drawee;, His authorized agent;, His legal representative, if the drawee is dead;, His official receiver or assignee, if he has been adjudged an insolvent; and, , All the drawees, if there are several drawees., , The holder must, if so required by the drawee of a bill of exchange presented to him for acceptance, allow the, drawee 48 hours exclusive of public holidays to consider whether he will accept it.