(a) Noting- noting is a convenient mode of authenticating the fact that a bill or note has been dishonored. When a note or a bill has been dishonored by non- acceptance or nonpayment, the holder causes such dishounour to be noted by a Notary public. Noting is a minute recorded by a notary public on the dishonored instrument. When an instrument, say a bill of exchange, is to be noted for dishonour, it is taken to Notary public who presents it once again for acceptance or payment, as the case may be; and if the drawee or acceptor still refuses to accept or pay the bill, it is noted, i.e., a minute is prepared containing the date of dishonour, reason for such dishonour, etc.; which is attached to the instrument; and the facts are’ noted on the instrument.
(b) Protest - When an instrument is dishonored, the holder may cause the fact not on by to be noted, but also to be certified by a Notary Public that the bill has been dishonolired. Such a certificate is referred to as a protest.
If the creed it or an acceptor of a bill is shaken by insolvency or otherwise before the date of maturity of the bill, the holder may cause such a fact also to ‘be noted and certified, Such a certificate is called a protest for better security. The contents of a protest are given in Section, 101 of the Act.
Neither noting nor protesting is compulsory in the case of inland bi is. But under Section 104 every foreign bill of exchange must be protested for dishonour when such a pretest is required by the law of the country where the bill was drawn. The advantage of both noting and protesting is that this constitutes prim facie good evidence in the Court of the fact that instrument has been dishonoured; It is necessary to note that under Section 119, the Court is bound to recognise a protest. But it may of may not recognise noting.
To make good this lacuna, Section 104 A has been introduced. It c1ai-ifies the position that any bill or document which has been noted can be protested any time thereafter for taking legal action against the parties. Thus, where a document has been noted within the time required by law, legal proceeding cannot be vitiated on account of protest not having been made.
(b) Protest - When an instrument is dishonored, the holder may cause the fact not on by to be noted, but also to be certified by a Notary Public that the bill has been dishonolired. Such a certificate is referred to as a protest.
If the creed it or an acceptor of a bill is shaken by insolvency or otherwise before the date of maturity of the bill, the holder may cause such a fact also to ‘be noted and certified, Such a certificate is called a protest for better security. The contents of a protest are given in Section, 101 of the Act.
Neither noting nor protesting is compulsory in the case of inland bi is. But under Section 104 every foreign bill of exchange must be protested for dishonour when such a pretest is required by the law of the country where the bill was drawn. The advantage of both noting and protesting is that this constitutes prim facie good evidence in the Court of the fact that instrument has been dishonoured; It is necessary to note that under Section 119, the Court is bound to recognise a protest. But it may of may not recognise noting.
To make good this lacuna, Section 104 A has been introduced. It c1ai-ifies the position that any bill or document which has been noted can be protested any time thereafter for taking legal action against the parties. Thus, where a document has been noted within the time required by law, legal proceeding cannot be vitiated on account of protest not having been made.
What is Noting and Protesting?
![What is Noting and Protesting?]()
Reviewed by Hosne
on
3:02 PM
Rating:
