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np
Amendment
Negotiable Instruments
Chapter-1
Preliminary
(3) This Act shall come into force from such date as Government
of Nepal may, by a Notification published in the Nepal Gazette,
appoint.
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laws.
This Act is commenced from the date 2039/3/14 ( June 28, 1982 ) (Nepal Gazette-
2039/3/14 (June 28, 1982).
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demand from its one Office to another Office to, or to the order
of a certain person.
(m) "Drawee" means a person thereby directed for the payment of the
Bill of Exchange.
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(u) "Maturity" means the date at which a Bill of Exchange falls due.
Chapter-2
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between the figure and letter of the amount to be paid on the Negotiable
Instrument, the amount written in the letter shall be the amount to be
paid.
Provided that, if such act has been done by the minor, all parties
accept him/her shall be liable.
12. Agent: For the acts done by an agent, the principal who has authorized
him/her to do such act shall be liable.
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15. Liability of Drawer: In case the Drawer has been provided due notice
of dishonour of the Bill of Exchange by the acceptor or Drawee, it shall
be the duty of the Drawer to Compensate the Holder.
16. Liability of the Bank Giving Payment of the Cheque: The Bank
having sufficient funds of the Drawer in the account, properly
applicable to the payment of the Cheque must pay the Cheque, and, in
default of such payment must compensate the Drawer or Holder in due
Course for any loss or damage caused by such default pursuant to this
Act.
18. Person Capable to Accept the Bill of Exchange: (1) No person except
the Drawee or Alternative Drawee of a Bill of Exchange can accept the
Bill of Exchange in his responsibility.
(2) In case there are more than one Drawee in the Bill of
Exchange, any one Drawee may accept the Bill of Exchange only in
his/her own favour.
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20. Liability of the Parties to Holder in Due Course: Every prior party to
a Negotiable Instrument is liable thereon to a Holder in due Course
until the instrument is duly satisfied.
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27. Duplicate to be Given: In case the Holder who has lost the Negotiable
Instrument requests for obtaining the duplicate of the lost Negotiable
Instrument the Drawee or maker of the Bill of Exchange shall have to
give him/her the aforesaid duplicate by taking required security and the
expenditure incurred for the preparation of the duplicate.
chapter - 3
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37. Negotiation by the Heir: In case the endorsee is dead before its
delivery, the heir of the deceased also cannot negotiate the instrument
by delivery only without the Endorsement.
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such instrument.
Chapter-4
Of Presentment
41. Drawee to Have Time: The Holder must, if demanded by the Drawee
of a Bill of Exchange presented to him/her for acceptance, allow the
Drawee two days, exclusive of Public Holiday, to consider whether
he/she will accept it.
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46. In case the place of Business or Residence is not Fixed: If the maker,
acceptor or Drawee of a Negotiable Instrument has no fixed place of
business or residence presentment of such instrument for payment or
acceptance may be made to him/her in person wherever he/she can be
found.
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(b) If the instrument being payble at the specified place, neither the
payer or his Agent to pay it attends at such place during the
business hours on a business day, or
(c) If the payer closes his/her office during the business hours on a
business day, or
Chapter-5
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Cheque or Draft drawn upon the Bank is not made presentment for its
payment within Six months from the date at which it is drawn.
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Chapter - 6
Of Notice of Dishonour
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68. The Agent to Have Time to Give Notice of Dishonour: When the
Negotiable Instrument is deposited with an agent for presentment, the
agent is entitled to give notice to the concerned principal party as if he
were the Holder giving notice of dishonour.
69. When Party to Whom Notice Given is Dead: When the party to
whom notice of dishonour is despatched is dead, and the party
despatching the notice is ignorant of his/her death, the notice shall not
be invalid.
(c) When the party has not suffered damage for want of notice,
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(f) When the party entitled to notice cannot after due search be
found, or the party bound to give notice, is for any other reason,
unable without any fault of his/her own to give it,
(g) When the party entitled to notice, knowing the facts, promises
unconditionally to pay the amount due on the Negotiable
Instrument.
72. The Facts of Dishonour May be Taken by Certifying it: The Holder
may take the facts of dishonour to be certified by the Notary public after
it is noted pursuant to Section 71.
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(b) The name of the person for whom and against whom the
instrument has been protested,
Chapter - 7
On Reasonable Time
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80. Reasonable Time to Give Notice to Make Liable to the Prior Party:
A party receiving notice of dishonour, who seeks to enforce his/her right
against a prior party, transmits the notice within a reasonable time if he
transmits it within the same time after its receipt as he/she would have
had to give notice if he/she had been the Holder.
Chapter-8
Of Crossed Cheques
81. General Crossed Cheque: Where a Cheque bears across its face an
addition of the words "and company" or any abbreviation thereof, or of
two parallel transverse lines simply, either with or without the words
"not negotiable" and the Cheque shall be deemed to be generally
crossed.
82. Special Crossed Cheque: Where a Cheque bears across its face an
addition of the name of a Banker, either with or without the words "not
negotiable" and the Cheque shall be deemed to be specially crossed.
83. Crossing after Issue: (1) Where a Cheque is uncrossed, the Holder may
make it general or special crossed Cheque.
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88. Payment of Crossed Cheque Out of Due Course: Any Banker paying
a crossed Cheque without completing the procedures of Section 84 and
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85, shall be liable to the true owner of the Cheque for any loss he/she
may sustain owing to the Cheque having been so paid.
Chapter -9
Miscellaneous
92. Acceptance For Honour: When a Bill of Exchange has been protested
for non-acceptance or for additional security, from the Notary Public,
any person not being a party liable thereon may, with the consent of the
Holder, accept the same for the honour of any party thereto.
94. Liability of Acceptor for Honour: (1) An acceptor for honour binds
him/herself to all parties subsequent to the party for whose honour
he/she accepts to pay the amount of the bill if the Drawee do not, and
such party and all prior parties are liable in their respective capacities to
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compensate the acceptor for honour for all loss or damage sustained by
him/her in consequence for such acceptance.
Provided that, an acceptor for honour is not liable for the Bill of
Exchange unless such Bill of Exchange is presented to him.
95. Payment For Honour: (1) When a Bill of Exchange has been caused to
be protested by the Notary Public for non-payment, any person may pay
the same for the honour of any party.
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make a set; but the whole set constitutes only one bill, and is
extinguished when one of the parts, if a separate bill, would be
extinguished.
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(c) that every transfer of a Negotiable Instrument was made before its
Maturity,
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(a) The Holder is entitled to the amount, together with the expenses
properly incurred in presenting, noting and protesting it.
(b) An endorser who, being liable, has paid the amount due on the
same is entitled to the amount so paid with interest from the date
of payment until realization thereof.
107A. Penalty: In case any person who deliberately transfers a Cheque by
drawing it to some body that he/she does not bear deposit in the Bank
or even if there is a deposit which is not sufficient, and if the Cheque
thus transferred is dishonoured due to lack of sufficient deposit when
the Cheque is presented to the concerned Bank for the payment, the
amount mentioned in the Cheque as well as interest on it shall be
caused to be recovered to the Holder from the Drawer and he/she shall
be punished with an imprisonment up to Three months or a fine up to
Inserted by the Finance Related Some Nepal Acts Amendment Act, 2039 (1982)
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Inserted by the Finance Related Some Nepal Acts Amendment Act, 2039 (1982)
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