Chapter XI - Of Acceptance and Payment for Honour and Reference in Case of Need
Section 108
Section 108: Acceptance for honour
Section 108 permits an eligible person to accept a bill for a party’s honour after the specified noting or protest, with the holder’s consent.
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This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
When a bill of exchange has been noted or protested for non-acceptance or for better security, any person not being a party already liable thereon may, with the consent of the holder, by writing on the bill, accept the same for the honour of any party thereto.
Key rule and applicability
The trigger is noting or protest for non-acceptance or better security. The intervening acceptor must not already be a party liable on the bill, must have the holder’s consent, and must accept by writing on the bill.
Limits and related provisions
A private assurance to help the drawer does not itself establish this statutory acceptance. Check the formal manner in section 109 and the later liability and charging conditions before treating the intervention as enforceable acceptance for honour.
Hypothetical business example
Hypothetical: a business associate offers to support a drawer after the bill has been protested for non-acceptance. The holder verifies that the associate is not already liable on it, consents to the intervention, and checks the written acceptance requirements.
Practical decision flow
Retain the noting or protest record and identify its ground.
Check the proposed acceptor’s existing liability status and the holder’s consent.
Record the acceptance on the bill in the required manner and identify whose honour is supported.
Practical checklist
Do
- Retain the noting or protest record and identify its ground.
- Check the proposed acceptor’s existing liability status and the holder’s consent.
- Record the acceptance on the bill in the required manner and identify whose honour is supported.
Avoid
- A private assurance to help the drawer does not itself establish this statutory acceptance. Check the formal manner in section 109 and the later liability and charging conditions before treating the intervention as enforceable acceptance for honour.
Glossary
- Acceptance for honour
- The intervention by acceptance under these special bill provisions.
- Better security
- The protest setting addressed by the Act where the specified security concern arises.
Frequently asked questions
Can someone already liable use this section’s acceptance route?
The section specifies a person not being a party already liable on the bill.
Is the holder’s consent required?
Yes. It is expressly required.
Can an oral promise replace writing on the bill?
The section describes acceptance by writing on the bill; the next section adds the required declaration.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026