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Section 113: Payment for honor

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 112 All 148 Sections of Negotiable Instruments Act Section 114

Legal Commentary & Landmark Judgments: Section 113

Section 113 regulates 'payment for honour', enacting that when a bill has been protested for non-payment, any person may pay it for the honour of any party liable, provided the payment is recorded by a Notary Public.

  • Pre-requisite of Protest for Non-Payment: Payment for honour cannot occur until the bill has been formally protested for non-payment.
  • Notarial Act of Honour Required: The payment must be declared before and recorded by a Notary Public as a 'notarial act of honour'.
  • Discharge of Subsequent Parties: Payment for honour discharges all parties subsequent to the party for whose honour it is paid.
Key Landmark Precedents:
  • Mertens v. Winnington (1794) 1 Esp 113: Established that a person paying a bill for the honour of an indorser acquires all the rights of that indorser against prior parties.
  • Ex parte Wyld (1860) 2 De GF & J 642: Affirmed that the notarial act of honour under Section 113 is an indispensable formality to vest statutory subrogation rights.
Courtroom Practice & Strategic Litigation Guidance:

If a commercial client pays a foreign bill to save an affiliate from insolvency, ensure the payment is executed before a Notary Public who draws up a formal 'Act of Honour' under Section 113. Without this notarial act, the payment is treated as voluntary, destroying subrogation rights.

Section 112 All 148 Sections of Negotiable Instruments Act Section 114