Right of payer for honour
Full Text
Right of payer for honour.—Any person so paying is entitled to all the rights in respect of the bill, 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.
Plain English Summary
Subrogates the payer for honour to all rights of the holder, entitling recovery of the paid sum, interest, and incidental expenses from the honoured party and prior parties.
Key Legal Elements
- Payer for honour steps into shoes of holder (subrogation)
- Entitled to all rights of holder at the time of payment
- Can recover full amount paid, plus interest and legitimate expenses
- Enforceable against the party honoured and prior liable parties
Practical Note
Statutory subrogation in commercial law. The payer for honour acquires the holder's remedies, allowing them to file a summary suit under Order 37 CPC based directly on the negotiable instrument rather than an ordinary money suit, claiming interest and noting expenses.
हिंदी पाठ
साखार्थ संदाय करने वाले के अधिकार।—इस प्रकार संदाय करने वाला कोई भी व्यक्ति ऐसे संदाय के समय धारक के बिल के संबंध में सभी अधिकारों का हकदार हो जाता है, और वह उस पक्षकार से, जिसके साखार्थ उसने संदाय किया है, इस प्रकार संदत्त सभी राशियां, उन पर ब्याज सहित तथा ऐसा संदाय करने में उचित रूप से उपगत सभी व्ययों सहित वसूल कर सकता है।