how is the noting of dishonour of a bill (a) voluntary (b)compulsory (c) advisable (d) unavoidable
Answers
answer is compulsory
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Answer: compulsory.
When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary public. Such certificate is called a protest. ... Such certificate is called a protest for better security. 35.101.
Dishonour of a bill means refusal to pay or inability to pay by the debtor because of insolvency. In other words, a bill is said to have been dishonoured when the drawee fails to make the payment on the date of maturity. In this situation, liability of the acceptor is restored. When a bill is dishonoured, it is always better if it is certified by a notary which is known as noting.
So, it is an ample proof that a bill is dishonoured which is noted down on the face to it. For this, the noting charges something known as notary charge or noting charges which may be recovered from the person who responsible for the dishonour of the bill.
The notary is compulsory in case of foreign bill as required under the law of that country whereas it is not so in case of inland bills. It is done with a view to have a proof of dishonouring the bill. So, it is very useful. Notary has to assign reasons for dishonour of a bill along with date of dishonour and charges made by him. It is to be noted that whosever pays the noting charges, ultimately these have to be borne by the drawee