Name of Institution
Presentation
1
Name of Institution
Introduction
• Negotiable Instruments, i.e., promissory note, bill of
exchange or cheque contain an or...
Name of Institution
What is presentment
• The Act requires presentment of negotiable
instruments. Presentment is simply a ...
Name of Institution
Kinds of Presentment
• The scheme of the Act as to presentment may
be classified as following:
• (1) P...
Name of Institution
• (1) Presentment for
Acceptance
5
Name of Institution
(a) To whom presented and by whom accepted
• The person who can accept the bill are :-
• (i) drawee of...
Name of Institution
(b) Time and place of acceptance
• If the bill is directed to the drawee at a particular place,
it mus...
Name of Institution
(c) Presentment through post-office
• Where authorised by agreement or usage a
presentment through the...
Name of Institution
(d) Within reasonable time
• It must be presented within reasonable time.
Section 105 provides that in...
Name of Institution
When presentment for acceptance is necessary
• A bill of exchange may have to be presented for
accepta...
Name of Institution
When presentment for acceptance is not
necessary
• (1) Where the drawee is :
• (i) a dead person, or
•...
Name of Institution
Effects of non-presentment of acceptance
• To establish legal relation between the parties to a bill
o...
Name of Institution
• (2) Presentment of promissory
note for sight
13
Name of Institution
• A promissory note, payable at a certain period after
sight must be presented to the maker thereof fo...
Name of Institution
• (3) Presentment for payment
Section
15
Name of Institution
• Promissory notes, bills of exchange and cheques must
be presented for payment to the maker, acceptor...
Name of Institution
• Instrument Payable on demand
(Section 74)
• Section 74 provides that negotiable
instrument payable o...
Name of Institution
• Instrument payable after date or sight (Section 66)
• A promissory note or bill of exchange payable ...
Name of Institution
• (4) Presentment of cheque in
order to charge the drawee bank
19
Name of Institution
• Presentment of cheque for payment
• A cheque be also presented for payment to the drawee
bank within...
Name of Institution
Thank you
21
of 21

Presentment

.
Published on: Mar 4, 2016
Published in: Law      
Source: www.slideshare.net


Transcripts - Presentment

  • 1. Name of Institution Presentation 1
  • 2. Name of Institution Introduction • Negotiable Instruments, i.e., promissory note, bill of exchange or cheque contain an order or promise to pay a certain sum of money. Promissory note contains promise and bill of exchange or cheque contains an order to pay a certain sum of money. In case of bill of exchange or cheque the drawee has no knowledge of such order. Promissory note is an exception of it since promisor himself promises so. The Act requires presentment for acceptance in case of bill of exchange and all instruments for payment. 2
  • 3. Name of Institution What is presentment • The Act requires presentment of negotiable instruments. Presentment is simply a demand by which holder of the instruments is required to do as per direction of the instruments. Direction may be either acceptance in case of bill of exchange or payment in case of all instruments. 3
  • 4. Name of Institution Kinds of Presentment • The scheme of the Act as to presentment may be classified as following: • (1) Presentment for acceptance (Section 61). • (2) Presentment of promissory note for sight (Section 62) • (3) Presentment for payment (Section 64) • (4) Presentment of cheque to charge the drawee bank (Section 138). 4
  • 5. Name of Institution • (1) Presentment for Acceptance 5
  • 6. Name of Institution (a) To whom presented and by whom accepted • The person who can accept the bill are :- • (i) drawee of the bill of exchange; or • (ii) all or some of the several drawees; or • (iii) a person named in the bill as a drawee in case of need; or • (iv) an acceptor for honour; or • (v) the duly authorised agent of the drawee; (Section 75) • (vi) In case of death, to his legal representative; and • (vii) In case insolvency of drawee, to his assignee. 6
  • 7. Name of Institution (b) Time and place of acceptance • If the bill is directed to the drawee at a particular place, it must be presented at that place and if at the due date for presentment he cannot, after reasonable search, be found thereon, the bill is dishonoured. (Sec-69) • If no place is specified in the instrument for presentment for acceptance, such presentment may be made to him in person wherever he' can be found and if the drawee after reasonable search, be found thereon, the bill is dishonoured. (Sec. 71) 7
  • 8. Name of Institution (c) Presentment through post-office • Where authorised by agreement or usage a presentment through the post office by means of a registered letter is sufficient. • Section 39 of English Bills of Exchange Act, 1882 makes similar provisions. 8
  • 9. Name of Institution (d) Within reasonable time • It must be presented within reasonable time. Section 105 provides that in determining reasonable time regard shall be had to the nature of the instrument and usual course of dealing Section 75-A makes provision for exercising delay where such delay is caused by circumstances beyond the control of the holder. • It must be presented in business hours on a business day. 9
  • 10. Name of Institution When presentment for acceptance is necessary • A bill of exchange may have to be presented for acceptance before it is presented for payment. But it is not every bill which has to be presented for acceptance. Presentment for acceptance is necessary only where- • (i) the bill is payable at a given time after acceptance, or • (ii) the bill is payable after sight, or • (iii) the bill expressly stipulates that it shall be presented for acceptance before it is presented for payment, or • (iv) the bill is made payable at a place other than the place of residence or business of the drawee. 10
  • 11. Name of Institution When presentment for acceptance is not necessary • (1) Where the drawee is : • (i) a dead person, or • (ii) an adjudicated insolvent, or • (iii) a fictitious person, or • (iv) a person incompetent to contract, and • (2) Where drawee cannot, after reasonable search, be found, the bill is dishonoured. 11
  • 12. Name of Institution Effects of non-presentment of acceptance • To establish legal relation between the parties to a bill of exchange or privity of contract acceptance by drawee of the bill of exchange is required. If it is not presented the following consequences may arise. • (i) Drawee's liability under the bill will not arise. • (ii) There will be no privity of the contract between the parties. • (iii) The bill of exchange will be deemed to be dishonoured. • (iv) No party thereto liable thereon to the person making such default. 12
  • 13. Name of Institution • (2) Presentment of promissory note for sight 13
  • 14. Name of Institution • A promissory note, payable at a certain period after sight must be presented to the maker thereof for sight (if he can after reasonable search be found) by a person entitled to demand payment, within a reasonable time after it is made and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default. 14
  • 15. Name of Institution • (3) Presentment for payment Section 15
  • 16. Name of Institution • Promissory notes, bills of exchange and cheques must be presented for payment to the maker, acceptor or drawee thereof respectively, by or on behalf of the holder as hereinafter provided. In default of such presentment, the other parties thereto are not liable thereon to such holder. • Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient. • Exception.-Where a promissory note is payable on demand and is not payable at a specified place, no presentment is necessary in order to charge the maker thereof. 16
  • 17. Name of Institution • Instrument Payable on demand (Section 74) • Section 74 provides that negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder. Thus promissory notes, bills of exchange or cheques payable on demand must be presented for payment. 17
  • 18. Name of Institution • Instrument payable after date or sight (Section 66) • A promissory note or bill of exchange payable after date or sight thereof, must be presented for payment at maturity. • Exception.-Exception to Section 64 says that a promissory note payable on demand and is not payable at a specified place, no presentment is necessary in order to charge the maker thereof. This proviso makes exception from presentment for payment of a promissory note : • (i) which is payable on demand, and • (ii) which is not payable at a specified place. 18
  • 19. Name of Institution • (4) Presentment of cheque in order to charge the drawee bank 19
  • 20. Name of Institution • Presentment of cheque for payment • A cheque be also presented for payment to the drawee bank within banking hours [any branch under C.B.S. scheme] • Presentment of Truncated Cheque [(Section 64(2)]:- where an electronic image of a truncated cheque is presented for payment, the drawee bank is entitled to demand any further information regarding the truncated cheque from the bank holding the truncated cheque in case of any reasonable suspicion about the genuineness of the apparent tenor of instrument, it is entitled to further demand the presentment of the truncated cheque itself for verification 20
  • 21. Name of Institution Thank you 21

Related Documents