Utkarsh purchased some goods from Saksham for 50,000 on 14th August. Saksham drawn a bill of exchange on Utkarsh and sent to him for acceptance on…

According to Section 61 of the Negotiable Instruments Act, 1881, a bill of exchange must be presented to the drawee thereof for acceptance by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default. Further, section 63 provides that the holder must, if so required by the drawee of a bill of exchange presented to him for acceptance, allow the drawee 48 hours (exclusive of public holidays) to consider whether he will accept it. In the instant case, Saksham drawn a bill of exchange on Utkarsh and on request of Utkarsh, he allowed 48 hours to accept the bill. The bill was sent at 3:00 pm on 14 th August. Bill was not accepted till 3:00 pm of 16 th August. Saksham treated the bill as dishonoured for non-acceptance. Here, As 15 th August is a public holiday, his 48 hours would end on 17 th August not on 16 th August. Hence, bill could not be treated as dishonoured on 16 th August.