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Section 112: When acceptor for honor may be charged

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 111 All 148 Sections of Negotiable Instruments Act Section 113

Legal Commentary & Landmark Judgments: Section 112

Section 112 regulates when an acceptor for honour may be charged, enacting that an acceptor for honour cannot be charged unless the bill has been presented for payment to the drawee and protested for non-payment.

  • Mandatory Presentment to Drawee First: The holder cannot bypass the original drawee; the drawee must be given the opportunity to pay at maturity.
  • Formal Protest for Non-Payment Required: A formal notarial protest for non-payment must be drawn up before the acceptor for honour can be sued.
  • Excuse for Delay: Delay in presentment or protest is excused only under Section 75A circumstances beyond control.
Key Landmark Precedents:
  • Mitchell v. Baring (1829) 10 B & C 4: The landmark ruling establishing that an action against an acceptor for honour without prior presentment to the drawee and protest is fatally defective.
  • Williams v. Germaine (1827): Affirmed that the condition of protest under Section 112 is a mandatory safeguard protecting commercial guarantors.
Courtroom Practice & Strategic Litigation Guidance:

If defending an acceptor for honour in a commercial suit, inspect the pleadings. If the plaintiff failed to obtain and plead a formal protest for non-payment against the original drawee, move for rejection of the plaint under Order VII Rule 11 CPC for lack of cause of action under Section 112.

Section 111 All 148 Sections of Negotiable Instruments Act Section 113