PRESENTMENT NEGOTIABLE INSTRUMENTS ACT

   PRESENTMENT
NEGOTIABLE INSTRUMENTS ACT
NEGOTIABLE INSTRUMENTS ACT

   BUSINESS LAW
SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

   MEANING OF THE PRESENTMENT

   PLACING OF THE NEGOTIABLE INSTRUMENT BEFORE A DRAWEE IS CALLED PRESENTMENT

   PRESENTMENT MAY BE FOR ANY OF THE FOLLOWING THREE PURPOSE:-

1.       PRESENTMENT FOR ACCEPTANCE

2.       PRESENTMENT FOR SIGHT

3.       PRESENTMENT FOR PAYMENT

   PRESENTMENT FOR ACCEPTANCE

1. ONLY BILL OF EXCHANGE WHICH HAS TO BE PRESENTED FOR ACCEPTANCE
2. BUT THE BILL OF EXCHANGE WHICH ARE PAYABLE ON DEMAND OR WHICH ARE PAYABLE ON A FIXED DATE NEED NOT BE PRESENTED FOR ACCEPTANCE
3. PRESENTMENT IS NECESSARY IN THE FOLLOWING CASES:-

1.       BILL OF EXCHANGE IS PAYABLE AFTER SIGHT ,MUST BE PRESENTED FOR ACCEPTANCE TO FIX THE DUE DATE

2.       WHEN THERE IS EXPRESS STIPULATION IN THE BILL THAT IT SHALL BE PRESENTED FOR ACCEPTANCE BEFORE IT IS PRESENTED FOR PAYMENT

3.       IT PROVIDES ADDITIONAL SECURITY BY PRESENTING AND ALSO PROVIDE IMMEDIATE RIGHT TO HOLD THE PRIOR PARTIES LIABLE FOR NON ACCEPTANCE

   HOW ACCEPTANCE IS MADE

   BILL OF EXCHANGE IS PRESENTED BEFORE THE DRAWEE AND DRAWEE SIGNIFIES HIS ASSENT IN WRITING BY SIGNING ACROSS THE FACE OF THE BILL WITH OR WITHOUT WORD ACCEPTED

   THE BILL IS SAID TO HAVE BEEN ACCEPTED

   ESSENTIALS

1. MUST BE GIVEN IN WRITING
2. MUST BE SIGNED BY THE DRAWEE OR HIS AUTHORIZED AGENT
3. MUST APPEAR ON THE FACE OF THE BILL OF EXCHANGE
4. MUST BE PRESENTED FOR ACCEPTANCE ON SPECIFIED TIME
5. SHOULD BE PRESENTED FOR ACCEPTANCE AT SPECIFIED PLACE
6. ESSENTIALS
7. WHEN THE TIME IS SPECIFIED WITH IN THAT SPECIFIED TIME
8. IF TIME IS NOT SPECIFIED THEN WITH IN REASONABLE TIME
9. MUST BE PRESENTED AT SPECIFIED PLACE IF PLACE IS SPECIFIED
10. NOT SPECIFIED AT DRAWEE’S PLACE OF BUSINESS OF RESIDENCE

   MODE OF ACCEPTANCE

1.       GENERAL OF ABSOLUTE ACCEPTANCE:-WHERE THE DRAWEE OF A BILL OF EXCHANGE GIVES HIS ACCEPTANCE WITHOUT NAY CONDITION OR QUALIFICATION. SUFFICIENT ON THE PART OF THE DRAWEE THAT HE PUTS SIGNATURE ON THE FACE OF BILL AND NEED NOT WRITE THE WORD ACCEPTED

2.       QUALIFIED ACCEPTANCE:-WHERE THE DRAWEE OF BILL OF EXCHANGE  ADDS ANY CONDITION OR QUALIFICATION WHILE ACCEPTING IT SAID TO BE QUALIFIED ACCEPTANCE.

•                       EXAMPLE:-ACCEPTED  TO MAKE PAYMENT AFTER MARRIAGE OF MY DAUGHTER

•                       ACCEPTED ONLY FOR 3200 AS THE AMOUNT IS 5000

   ESSENTIALS OF PRESENTMENT

1. THE DRAWER  OF THE BILL AND ANY OTHER PERSON ENTITLED TO DEMAND ACCEPTANCE PRESENT THE BILL FOR ACCEPTANCE
2. TO WHOM THE PRESENTMENT:-
1. THE DRAWEE OF THE BILL
2. THE DRAWEE IN CASE OF NEED
3. ALL THE DRAWEE WHERE THERE ARE MORE THAN ONE DRAWEE
4. THE LEGAL REPRESENTATIVES OF THE DECEASED DRAWEE
5. THE OFFICIAL RECEIVER
6. THE AUTHORIZED AGENT OF  A DRAWEE
7. THE ACCEPT OR FOR THE HONOR
3. IT SHOULD BE PRESENTED IN SPECIFIED TIME,IF TIME IS NOT SPECIFIED THEN WITHIN REASONABLE TIME
4. IT SHOULD BE PRESENTED AT SPECIFIED PLACE,IF NOT SPECIFIED AT DRAWEE’S PLACE OF BUSINESS RESIDENCE

   PRESENTMENT EXCUSED

1. INCOMPETENT DRAWEE
2. FICTITIOUS DRAWEE
3. NOT ABLE TO TRACE OUT THE DRAWEE
4. PRESENTMENT IS IRREGULAR BUT ACCEPTANCE HAS REFUSED ON SOME OTHER GROUND
5. DRAWEE IS DEAD
6. INSOLVENT DRAWEE,THE BILLS MAY NOT PRESENTED FOR ACCEPTANCE TO HIS LEGAL REPRESENTATIVE OR THE OFFICIAL ASSIGNEE

7. PROOF FOR PRESENTMENT

•                    SHOWING THE BILL TO THE DRAWEE SO THAT HE MAY SEE THE SAME AND JUDGE WHETHER HE WILL ACCEPT OR NOT. DRAWEE CAN INSIST ON PRODUCTION OF THE BILL. HE IS ENTITLED TO 48 HOURS TIME ( EXCLUSIVE OF PUBLIC HOLIDAYS)

•                    EFFECT OF NON PRESENTMENT:-WHEN PRESENTMENT FOR ACCEPTANCE IS NECESSARY AND HOLDER FAILS TO DO SO,THE DRAWER AND ALL ENDORSERS ARE DISCHARGED FROM LIABILITY TO HIM.

   PRESENTMENT FOR SIGHT

1.       IN CASE OF BILL OF EXCHANGE IS PAYABLE AFTER SIGHT,PRESENTMENT FOR ACCEPTANCE IS ESSENTIALS BEFORE PAYMENT

2.       IN CASE OF PROMISSORY NOTE,NO ACCEPTANCE IS REQUIRED. BUT WHEN AFTER SIGHT APPEARS ON THE PROMISSORY NOTES.IT IS NECESSARY TO ORDER FIX THE MATURITY OF THE INSTRUMENT

3.       AFTER SIGHT ON PROMISSORY NOTE MEANS PAYMENT IS NOT TO BE DEMANDED TILL IT IS SHOWN TO THE MAKER

4.       SHOULD BE MADE WITH IN REASONABLE TIME AND ON BUSINESS DAY DURING BUSINESS HOURS

   PRESENTMENT FOR PAYMENT

1. PROMISSORY NOTES,BILL OF EXCHANGE AND CHEQUES MUST BE PRESENTED FOR PAYMENT TO THE MAKER, ACCEPTOR OR DRAWEE  THERO OF.
2. THE OBJECT OF PRESENTMENT IS TO GIVE THE PARTY CONCERNED AN OPPORTUNITY TO PAY
3. VALID PRESENTMENT MEANS:-

1.       ON THE PROPER DAY

2.       AT THE PROPER HOUR

3.       PROPER PERSONS

4.       AT THE PROPER PLACE

5.       IN THE PROPER MANNER