धारा 13

A bill of exchange is said to be dishonoured by non-acceptance when the drawee, or one of several drawees, refuses to accept the bill within the time prescribed by law. As per Section 13 of the Negotiable Instruments Act, 1881, 'When the drawer of a bill of exchange has specified therein the name of a person as the drawee, and such person has refused to accept the bill, or where the drawee is a fictitious person, or where the drawee is not in existence, and the bill is not accepted, the bill shall be deemed to be dishonoured by non-acceptance.' The dishonour of a bill by non-acceptance gives the holder the right to sue the drawer and the endorsers for the amount of the bill. The Madras High Court in the case of Official Assignee vs. R. S. Ramaswami (1965) has held that a bill is deemed to be dishonoured by non-acceptance if the drawee fails to accept the bill within the prescribed time limit.