Extinguishment of rights of action on bill in acceptor's hands
Full Text
Extinguishment of rights of action on bill in acceptor's hands.—If a bill of exchange which has been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action thereon are extinguished.
Plain English Summary
Extinguishes all legal rights of action on a negotiated bill of exchange when the acceptor becomes the holder in their own right at or after maturity.
Key Legal Elements
- The bill of exchange must have been negotiated
- The bill is held by the acceptor in their own right (not as an agent or trustee)
- Holding occurs at or after maturity
- All causes of action on the bill are completely extinguished
Practical Note
Applies the doctrine of merger—a debtor cannot sue himself. Once the principal debtor (acceptor) acquires the bill in their own right at or after maturity, the debt is completely discharged and the bill cannot be reissued or negotiated to hold prior parties liable.
हिंदी पाठ
प्रतिग्रहीता के हाथों में विनिमय-पत्र पर वाद के अधिकारों का निर्वापण।—यदि कोई विनिमय-पत्र, जिसका परक्रामण किया जा चुका है, परिपक्वता पर या उसके पश्चात प्रतिग्रहीता द्वारा अपने स्वयं के अधिकार में धारित किया जाता है, तो उस पर वाद के सभी अधिकार समाप्त (निर्वापित) हो जाते हैं।