| (1) |
Notice of dishonour, in order to be valid and effectual, must be given in accordance with the following rules, namely— |
| (a) |
the notice must be given by or on behalf of the holder, or by or on behalf of an indorser who, at the time of giving it, is himself liable on the bill; |
| (b) |
the notice may be given by an agent, either in his own name or in the name of any party entitled to give notice, whether that party is his principal or not; |
| (c) |
the notice may be given in writing, or by personal communication, and may be given in any terms which sufficiently identify the bill and intimate that the bill has been dishonoured by non-acceptance or non-payment; |
| (d) |
the return of a dishonoured bill to the drawer or an indorser is, in point of form, deemed to be a sufficient notice of dishonour; |
| (e) |
a written notice need not be signed, and an insufficient written notice may be supplemented and validated by verbal communication; |
| (f) |
if notice of dishonour is required to be given to any person, it may be given either to such person himself or to a person authorized to receive such notice on his behalf; |
| (g) |
if the drawer or an indorser is dead, and the party giving notice knows it, the notice must be given to the executor, if there is one and, with the exercise of reasonable diligence, he can be found; |
| (h) |
if the drawer or an indorser is insolvent, notice may be given either to himself, or to his trustee; |
| (i) |
if there are two or more drawers or indorsers who are not partners, notice must be given to each of them, unless one of them has authority to receive such notice for one or more of the others, in which case notice to the one having such authority shall be deemed to be notice to such other person or persons; |
| (j) |
the notice may be given as soon as the bill is dishonoured, and must be given within a reasonable time within the meaning of subsection (5); |
| (k) |
if a bill, when dishonoured, is in the hands of an agent, he may give notice either to the parties liable on the bill or to his principal, and if he gives notice to his principal, he must do so within the same period of time that would have been allowed if he were the holder. |
| (2) |
If the notice is given by or on behalf of the holder, it ensures for the benefit of all subsequent holders and all prior indorsers who have a right of recourse against the party to whom it is given. |
| (3) |
If notice is given by or on behalf of an indorser entitled to give notice by virtue of the provisions of subsection (1), it ensures for the benefit of the holder and all indorsers subsequent to the party to whom notice is given. |
| (4) |
A misdescription of the bill in the notice shall not vitiate the notice, unless the party to whom the notice is given is, in fact, misled thereby. |
| (5) |
In the absence of special circumstances, it is deemed that notice is not given within a reasonable time for the purposes of paragraph (j) of subsection (1), unless notice is given or the notice is posted— |
| (a) |
on the business day next after the day on which the bill is dishonoured; or |
| (b) |
if that business day is a Saturday, on the business day next after that Saturday. |
[Sub-section (5) substituted by section 2 of Act 58 of 1977.]
| (6) |
A principal upon receipt of notice contemplated in paragraph (k) of subsection (1) has himself the same period of time for giving notice that he would have had if the agent had been an independent holder. |
| (7) |
If a party to a bill receives due notice of dishonour, he has, after the receipt of such notice, the same period of time for giving notice to antecedent parties that the holder has after dishonour. |
| (8) |
If a notice of dishonour is duly addressed and posted, the sender is deemed to have given due notice of dishonour notwithstanding any miscarriage by the Post Office. |
Special Investigating Units and Special Tribunals Act, 1996
