Dishonour by Non- Acceptance {sec. 91}
A bill is dishonoured by non- acceptance if it is duty presented for acceptance, but the drawee refuses to accept the bill.
Cases in which bill are dishonoured by non- acceptance:-
(a) When the drawee makes default in acceptance upon being duly required to accept the bill.
(b) In case there is two or more drawee who are not partners, if the bills is not accepted by all the drawee.
(c) Where the drawee is a fictitious person.
(d) When the drawee can not be found even after a reasonable search.
(e) When the drawee is incompetent to contract.
(f) Where the drawee gives a conditional acceptance and the holder does not give his consent to the conditional acceptance.
Effect:-
*The holder gets an immediate right to sue all the prior parties.
*He need not wait till the maturity of the bill for it to be dishonoured on presentment for payment.
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