Protest
Full Text
Protest.—When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary public. Such certificate is called a protest.
Protest for better security.—When the acceptor of a bill of exchange has become insolvent, or his credit has been publicly impeached, before the maturity of the bill, the holder may, within a reasonable time, cause a notary public to demand better security of the acceptor, and on its being refused may, within a reasonable time, cause such facts to be noted and certified as aforesaid. Such certificate is called a protest for better security.
Plain English Summary
Authorizes a notary public's formal certificate of dishonour (protest) and provides for protest for better security if the acceptor becomes insolvent before maturity.
Key Legal Elements
- Formal certificate of dishonour issued by a notary public
- Certificate is known as a protest
- Protest for better security permitted prior to maturity if acceptor becomes insolvent or credit is impeached
- Refusal by acceptor to provide better security is formally certified by the notary
Practical Note
Under Section 104, protest is mandatory for foreign bills of exchange to hold drawers and indorsers liable. Under Indian Evidence Act / BSA, the court presumes the fact of dishonour upon production of a notary's protest certificate, saving litigants from having to call bank witnesses to prove dishonour.
हिंदी पाठ
प्रत्याख्यान (Protest)।—जब कोई वचन-पत्र या विनिमय-पत्र अप्रतिग्रहण या असंदाय द्वारा अनादृत हो गया हो, तब धारक युक्तियुक्त समय के भीतर ऐसे अनादर को किसी नोटरी पब्लिक द्वारा टिप्पण और प्रमाणित करा सकता है। ऐसे प्रमाण-पत्र को प्रत्याख्यान (protest) कहा जाता है।
बेहतर प्रतिभूति के लिए प्रत्याख्यान।—जब विनिमय-पत्र का प्रतिग्रहीता बिल की परिपक्वता से पहले दिवालिया हो गया हो, या उसकी साख सार्वजनिक रूप से संदिग्ध हो गई हो, तब धारक युक्तियुक्त समय के भीतर किसी नोटरी पब्लिक के माध्यम से प्रतिग्रहीता से बेहतर प्रतिभूति की मांग करा सकता है, और उसके अस्वीकार किए जाने पर युक्तियुक्त समय के भीतर ऐसे तथ्यों को पूर्वोक्त रीति से टिप्पण और प्रमाणित करा सकता है। ऐसे प्रमाण-पत्र को बेहतर प्रतिभूति के लिए प्रत्याख्यान कहा जाता है।