Page 93 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes acceptor’s name on the bill, or (b) an immediate right of resource against the drawer and
other parties if the bill is refused acceptance and thereby dishonoured.
5. Presentment to whom: Presentment for acceptance must be made- (i) to the drawer or his
duly authorised agent; (ii) to all the drawees where there are more than one unless they
are partners and one has express or implied authority to accept on behalf of all; (iii) to the
legal representative, if the drawee is dead; (iv) to the official receiver or assignee, in case
the drawee has been declared insolvent.

6. Time and place for presentment (Ss. 61 and 62): Bills must be presented for acceptance
before maturity. Where a period for presentment is specified, it must be presented within
that period. Where no period is specified and the presentment is obligatory, it must be
made within a reasonable time. Further, the presentment must be made on a business day
and within business hours. Regarding place of presentment, a bill should be presented at
the place of business and where drawee has no place of business, at his residence. Where
the bill is presented at the residence, it must be at the reasonable hour.
7. Presentment for acceptance when excused: Where presentment for acceptance is obligatory
and the holder fails to do so, the drawer and all other parties thereon cease to be liable to
him. He is not entitled to a decree, nor can he base his claim on the original consideration.
However, presentment is excused under the following circumstances: (i) where the drawee
cannot, after reasonable search, be found (s.61), (ii) where the drawee becomes insolvent
or is dead, the bill must be presented to the official receiver or official assignee of the
insolvent or to the legal representative of the deceased. (iii) where the acceptance is
qualified and not absolute (s.91). (iv) where the drawee is a fictitious person or one incapable
of contracting, e.g., minor or lunatic (s.91). (v) where, though presentment is irregular, the
acceptance is refused on some other ground.

Parties to a Bill of Exchange

(i) The drawer - the person to whom the amount of the bill is payable. (ii) The drawee - the
person on whom the bill is drawn. Thus, drawee is the person responsible for acceptance and
payment of the bill. In certain cases however a stranger may accept the bill on behalf of the
drawee. (iii) The payee - the person to whom amount of the bill is payable. It may be the drawer
himself or any other person. (iv) The holder - is the original payee but where the bill has been
endorsed, the endorsee. In case of a bearer bill, the bearer or possessor is the holder. (v) The
endorser - is the person who endorses a bill. (vi) The endorsee - is the person to whom the bill
is negotiated by endorsement. (vii) Drawee in case of need. (viii) Acceptor for honour.

Caselet Government Waives Stamp Duty on Usance Bills for
Exporters

—by KR Srivats
n an export friendly move, the Finance Ministry has decided to refrain from exacting
the whole of the stamp duty chargeable on the usance bills of exchange executed by an
Iexporter in an export transaction.

This move, which has come into effect from July 8, of the revenue department spells good
news for the exporting community. Exporters have been demanding waiver of stamp
duty on foreign bills.
Contd...

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