Meaning of ‘Dishonour’

When some negotiable equipment is presented for acceptance or payment and is neither accepted or paid, it is known as the ‘destroy’ of negotiable equipment. A bill or exchange is insulted by its non-acceptance or non-payment. But in case of checks or promotions, because there is no approval, so they’re humiliated due to refusal to pay.

● Terms for humiliation:

(1) Humiliation by non-acceptance – In accordance with section 91 of the Indian negotiable equipment Act, humiliation may be possible in the following circumstances:

The following are two main conditions for humiliation.

i. If within 48 hours of presentation before the liberal (drave), the equipment is not accepted, the equipment will be deemed to be insulted.

ii. If the liberal is unable to contract, there is no meaning in ‘acceptance’ and the equipment will be considered humiliated.

iii. If the liability gives conditional or banned approval and if the laneer does not agree with this, the device will be insulted. It is clear that the bill will not be insulted, but if the predecessor parties do not agree with such approval, they will be deemed free of their liability.

iv. If the liable is some fantasy or fantasy person, the bill may not be presumed for acceptance, so it will be insulted.

quote 11: In case of liberal death or after bankrupt, acceptance can be demanded from a payer or successor, but it depends on the conscience of the creditor.

vi. If the address or place of the creditor cannot be located completely despite search, the device will be considered humiliated.

(vii) If the equipment is written against more than one person and some of them do not give liable acceptance.

(2) Humiliation by non-payment- In the following terms, insult is caused by non-payment:

i. According to section 92 of the Indian negotiable equipment Act, if some cheques, promotions or Bill of Exchange have been presented before its bank, drawers or acceptances respectively, and he refusers to paying his/her own, such devices will be deemed to be insulted.

ii. According to Section 76 of the Indian negotiable equipment Act, the equipment will also be deemed to be insulted in that event if the liable refuses to presentation for payment, or does not pay its own at the time of set time.

iii. Very often, in case of requirement, the lieder’s name is written which pays by the acceptor in case of non-payment. According to Section 115 of the Indian negotiable equipment Act, if in the case of requirement, the equipment is presented before a liability for payment, and that too refuses to pay, the equipment will be insulted.

Thus, in the two situations above, negotiable equipment become insulted. After such humiliation, the holder can make them responsive after informing other parties. But if humiliation has been caused by ‘not acceptance’, the liber will not be liable.

criminal liability on insult

Since the passing of the amendment Act, the insult of the cheque makes a crimina liability at the drawer of the cheque, w.e.f.1st April, 1989. Such humiliation, therefore, may result in imprisonment of a maximum period of 1 year or twice from the amount of the cheque. This liability will be different from the drawer’s civil liability. Sections 138 and 142 now provide criminal liability under the Indian Negotiable Devices Act.