Drawee in case of need
Full Text
Drawee in case of need.—Where a drawee in case of need is named in a bill of exchange, or in any indorsement thereon, the bill is not dishonoured until it has been dishonoured by such drawee.
Plain English Summary
Provides that when a bill names an alternative drawee in case of need, no legal dishonour occurs until that designated referee has also refused acceptance or payment.
Key Legal Elements
- Bill or endorsement names a drawee in case of need
- Bill must be presented to drawee in case of need upon original drawee's refusal
- Bill is not legally dishonoured until also dishonoured by drawee in case of need
Practical Note
Used frequently in cross-border bills to prevent international dishonour. The drawer names a local correspondent or agent as drawee in case of need. The holder cannot sue the drawer or indorsers without first presenting to this referee.
हिंदी पाठ
ज़रूरत की दशा में द्रावी।—जहां किसी विनिमय-पत्र में या उस पर के किसी पृष्ठांकन में 'ज़रूरत की दशा में द्रावी' नामित किया गया हो, वहां बिल तब तक अनादृत नहीं माना जाता जब तक कि वह ऐसे द्रावी द्वारा अनादृत न कर दिया जाए।