New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    Section 82 of the Negotiable Instrument Act, 1881 deals with _________.

    A Payment of Interest Correct Answer Incorrect Answer
    B Instruments endorse in blank Correct Answer Incorrect Answer
    C Discharge from liability Correct Answer Incorrect Answer
    D Presentment for acceptance Correct Answer Incorrect Answer

    Solution

    Section 82 of NI Act Discharge from liability—The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon— (a) by cancellation—to a holder thereof who cancels such acceptor's or indorser’s name with intent to discharge him, and to all parties claiming under such holder; (b) by release—to a holder thereof who otherwise discharges such maker, acceptor or indorser, and to all parties deriving title under such holder after notice of such discharge; (c) by payment—to all parties thereto, if the instrument is payable to bearer, or has been indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount due thereon.

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