The Anglo-Indian Codes

CHAPTER XVI.

Law

liability of

OF INTERNATIONAL LAW.

134. In the absence of a contract to the contrary, the liagoverning bility of the maker or drawer of a foreign promissory note, maker, bill of exchange or cheque is regulated in all essential matters or indorser by the law of the place where he made the instrument, and of foreign the respective liabilities of the acceptor and indorser1 by the law of the place where the instrument is made payable.

acceptor

instru

ment.

Law of

place of payment governs dishonour.

Illustration.

A bill of exchange was drawn by A in California, where the rate of interest is 25 per cent., and accepted by B, payable in Washington, where the rate of interest is 6 per cent. The bill is endorsed in British India, and is dishonoured. An action on the bill is brought against B in British India. He is liable to pay interest at the rate of 6 per cent. only; but if A is charged as drawer, A is liable to pay interest at the rate of 25 per cent.

135. Where a promissory note, bill of exchange or cheque is made payable in a different place from that in which it is made or indorsed, the law of the place where it is made payable determines what constitutes dishonour and what notice of dishonour is sufficient 2.

Illustration.

A bill of exchange drawn and indorsed in British India, but accepted payable in France, is dishonoured. The indorsee causes it to be protested for such dishonour, and gives notice thereof in

1 Horne v. Rouquette, L. R., 3 Q. B. D. 514. In England the indorsee is regarded as in the nature of a new drawer and his liabilities seem regulated by the law of the place where he indorsed the instrument, Chalmers, 121, citing Allen v. Kemble, 6 Moo. P. C. 321, and so the Commissioners framed their draft.

The

Select Committee, however, thought that as the indorser is a surety for the acceptor his liability is measured by that of his principal, is, in other words, regulated by the lex loci of performance.

2 Gibbs v. Fremont, 9 Exch. 31, and Byles, 389.

accordance with the law of France, though not in accordance with the rules herein contained in respect of bills which are not foreign. The notice is sufficient.

out of

India, but

136. If a negotiable instrument is made, drawn, accepted Instrument or indorsed out of British India, but in accordance with the made &c. law of British India, the circumstance that any agreement British evidenced by such instrument is invalid according to the law of the country wherein it was entered into does not invalidate ance with any subsequent acceptance or indorsement made thereon in British India 1.

in accord

its law.

tion as to

foreign

137. The law of any foreign country regarding promissory Presumpnotes, bills of exchange and cheques shall be presumed to be the same as that of British India, unless and until the contrary law. is proved 2.

1 Mr. Chalmers says (p. 123) that this section seems to have been taken in part from sec. 85 of the German General Exchange Law.

2 This section should be transferred to the Evidence Act. As to foreign stamp law, the Indian, like the English, Courts do not re

gard the revenue-laws of another
country, Byles, 386, 390, except,
perhaps, where a bill issued abroad is
absolutely void because it is not
stamped in accordance with the law
of the place of issue, Story, Conflict of
Laws, 2nd ed. p. 341; Bristow v.
Secqueville, 5 Exch. 275.

CHAPTER XVII.1

Power to

appoint notaries public.

Power to

make rules for notaries public.

NOTARIES PUBLIC.

138. The Governor General of India in Council may, from time to time, by notification in the official Gazette, appoint any person, by name or by virtue of his office, to be a notary public under this Act, and to exercise his function as such within any local area, and may, by like notification, remove from office any person appointed notary public under this

Act.

139. The Governor General in Council may, from time to time, by notification in the official Gazette, make rules consistent with this Act for the guidance and control of notaries public appointed under this Act, and may, by such rules, (among other matters) fix the fees payable to such notaries.

1 Added by Act II of 1885, sec. 10.

SCHEDULE.

(a)-Statutes.

Year and chapter.

TITLE.

Extent of repeal.

9 Wm. III, An Act for the better pay- The whole.