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Negotiable instrument

Rahul (investment banker) (120 Points)

09 October 2009

Cn a bill of exchange be endorsed by drawer or payee without d acceptance of drawee? Pls do reply. Thnx

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4 Replies

Rahul (investment banker) (120 Points)
Replied 11 October 2009

Thnx shubham ..

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Rahul (investment banker) (120 Points)
Replied 11 October 2009

Shubham i didnt get my ans in ur notes . T ws mentioning mre of acounting part of bill rather than teling d law ..

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 17 October 2009

Mr. Rahul,

If the bill of exchange is not accepted by the drawee, it is not at all a valid bill of exchange. it shall remain only a draft bill till its accepted by the drawee. once, its accepted, it becomes a valid nogotiable instrument and then only it can be endorsed.

Regards,

CA Amol G. Kabra

Rahul (investment banker) (120 Points)
Replied 18 October 2009

Thnx sir 4 taking d eforts 4 answering my que . I posted t long tym bk n til dis tym i researched on t alot .. N acording to my research . T S NT AT ALL MANADATORY .. F drawee didnt acept t den also t s valid b/e bt primary liability in dat case ll b of drawer n nt f drawe , since drawer has signed d bill .. Aceptance f drawe s manadatory in only 2 instance where bill of exchange s drawn on after d date of sight n 2ndly where payee wants xtra security on bill .. Lot f buk hv nt mentioned abt t including g.k kapur n munish bhandari .. I found t in m.c. Kuchal ..