Scope of the Drawer or Maker or acceptor under Negotiable ...
Indian Laws
June 22, 2022
Scope of the Drawer or Maker or acceptor under Negotiable instrument act - recovery from the surety - there is a contract that has the effect of varying the prescription in Section 37 read with Section 33 of the NI Act as regards acceptance of liability as a primary obligor by a person other than the drawee or drawee in need or acceptor for honour. On the facts of this case, however, it does not make a material difference whether the second Defendant's obligation is as principal debtor under a contract to the contrary or as surety because the first Defendant failed or refused to pay for goods received, thereby triggering the liability of the second Defendant even if considered as a surety. - Both the first and second Defendants are jointly and severally liable - HC
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