Bills of Exchange Act, 1964 (Act No. 34 of 1964)Chapter IDischarge of bill61. Discharge by cancellation of bill, and discharge of party by cancellation of his signature |
| (1) | If a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged. |
(2)
| (a) | Any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent. |
| (b) | If a signature is so cancelled any indorser who would have had a right of recourse against the party whose signature is cancelled is also discharged. |
| (3) | A cancellation made unintentionally or under a mistake or without the authority of the holder, is inoperative: Provided that if a bill or any signature thereon appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally or under a mistake or without authority. |