Chapter -9

Chapter -9  Miscellaneous
92. Acceptance For Honour:

When a Bill of Exchange has been protested for non-acceptance or for additional security, from the Notary Public, any person not being a party liable thereon may, with the consent of the Holder, accept the same for the honour of any party thereto.

93. How Acceptance For Honour Must be Made:

A person desiring to accept for honour must, by writing on the Bill of Exchange itself under his/her hand, declare that he/she accepts for the honour of the Drawer
or of a particular endorser whom he/she names. In case such name is not mentioned the acceptance shall be deemed to be done for the honour of
the Drawer.

94. Liability of Acceptor for Honour:

(1) An acceptor for honour binds him/herself to all parties subsequent to the party for whose honour he/she accepts to pay the amount of the bill if the Drawee do not, and such party and all prior parties are liable in their respective capacities to   compensate the acceptor for honour for all loss or damage sustained by
him/her in consequence for such acceptance.
Provided that, an acceptor for honour is not liable for the Bill of Exchange unless such Bill of Exchange is presented to him.
(2) An acceptor for honour may be Charged unless the Bill of Exchange has at its Maturity been presented to the Drawee for payment,
and has been dishonoured by him/her, and protested by the Notary Public for such dishonour.

95. Payment For Honour:

(1) When a Bill of Exchange has been caused to be protested by the Notary Public for non-payment, any person may pay the same for the honour of any party.
Provided that, the person so paying or his/heragent must cause to be noted in the record of the Notary Public that for whose honour the
payment has been made before giving such payment.
(2) Any person making payment pursuant to Sub-section (1) is entitled to all the rights, in respect of the Holder at the time of such
payment, and may recover from the party for whose honour he pays all sums so paid, with interest thereon and with all expenses properly
incurred in making such payment.

96. Alternative Drawee in case of Need: Where an Alternative Drawee in case of need is named in a Bill of Exchange, or in any Indorsement
thereon, the Bill of Exchange is not dishonoured until it has been dishonoured by such Drawee.

97. Acceptance and Payment Without Protest: The Alternative Drawee in case of need may accept and pay the Bill of Exchange without previous
protest by a Notary Public.

98. Sets of Bills of Exchange: Bills of Exchange may be drawn in parts, each part being numbered and containing a provision that it shall
continue only so long as the others remain unpaid. All the parts together  make a set; but the whole set constitutes only one bill, and is
extinguished when one of the parts, if a separate bill, would be extinguished.

99. Provisions Relating to the Foreign Negotiable Instrument: In the absence of a contract to the contrary, the liability of the maker or
Drawer of a foreign Negotiable Instrument is regulated in all essential matters by the law of the country where the instrument was made and
the respective liabilities of the acceptor and endorser by the law of the country where the instrument is made payable.

100. Law of the Country of Payment Governs Dishonour: Where a Negotiable Instrument is made payable in a different country from that
in which it is made or indorsed, the law of the country where it is made payable determines what constitutes dishonour and what notice of
dishonour is sufficient.

101. Validity of Bill of Exchange Made or Drawn in Foreign Country: If a Negotiable Instrument is made drawn, accepted or endorsed outside
Nepal, but in accordance with Nepalese Law, the circumstance that any agreement evidenced by such instrument is invalid according to the law
of the country wherein it was entered into does not invalidate any subsequent acceptance or endorsement made thereon within Nepal.

102. Presumption as to Foreign Law: The law of any foreign country regarding Negotiable Instrument shall be presumed to be the same as
that of Nepal Law, unless and until the contrary is proved.

103. Special Provisions Relating to the Evidence: Until the contrary is proved, the following presumptions shall be made:- (a) that every Negotiable Instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, indorsed negotiated or transferred, was, accepted,
indorsed, negotiated or transferred for consideration in  accordance with the prevailing law,
(b) that every Negotiable Instrument bearing a date was made or drawn on such date,
(c) that every transfer of a Negotiable Instrument was made before its Maturity,
(d) that every accepted Bill of Exchange was accepted within a reasonable time after its date and before its Maturity,
(e) that the Indorsements appearing upon a Negotiable Instrument were made in the order in which they appear thereon,
(f) that the Holder of a Negotiable Instrument is a Holder in due Course.
Provided that, the burden of proving that the Holder is a Holder in due Course lies upon him/her in the following conditions:-
(1) Where the Negotiable Instrument has been obtained from its lawful owner or from any person in lawful custody thereof by means of an offence or fraud,
(2) Where the Negotiable Instrument has been obtained from the maker, Drawer or acceptor thereof by means of an offence or fraud, or for unlawful
consideration.

104. Estoppel Against denying Capacity of Payee to Indorse: No maker or Drawer of the Negotiable Instrument and the acceptor for the honour of
the Drawer shall, in a suit thereon by a Holder in due Course, be permitted to deny the Payee’s capacity, at the date of the Negotiable
Instrument, to indorse the same.

105. Estoppel Against Denying Signature or Capacity of Prior Party: No endorser of a Negotiable Instrument shall, in a suit thereon by a  subsequent Holder, be permitted to deny the signature or capacity to contract of any prior party to the Negotiable Instrument.

106. Appointment of the Notary Public: Government of Nepal may, by a Notification published in the Nepal Gazette, appoint a Notary Public for
the work to be done by the Notary Public or may designate any Officer to do such work.

? 106A. Provisions Relating to the Notary Public: Qualification, certificate, conduct and fees of the Notary Public and the other procedures of the
Notary Public shall be as prescribed.

? 106B. Removal of the Notary Public: Government of Nepal may remove the Notary Public in prescribed conditions.

107. Determination of Compensation: The compensation payable in case of dishonour of a Negotiable Instrument, by any party liable to the
Holder or any endorsee shall be determined as follows:-
(a) The Holder is entitled to the amount, together with the expenses properly incurred in presenting, noting and protesting it.
(b) An endorser who, being liable, has paid the amount due on the  same is entitled to the amount so paid with interest from the date of payment until realization thereof.
? 107A. Penalty: In case any person who deliberately transfers a Cheque by drawing it to some body that he/she does not bear deposit in the Bank
or even if there is a deposit which is not sufficient, and if the Cheque thus transferred is dishonoured due to lack of sufficient deposit when
the Cheque is presented to the concerned Bank for the payment, the amount mentioned in the Cheque as well as interest on it shall be caused to be recovered to the Holder from the Drawer and he/she shall be punished with an imprisonment up to Three months or a fine up to  Three Thousand Rupees or both.
108. Limitation: No complaint relating to the Negotiable Instrument shall be valid which is not filed within five years from the date of cause of
action to file such complaint.

109 Power to Frame Rules: Government of Nepal may Frame Rules to carry out the objectives of this Act