धारा 27

According to Section 27 of the Negotiable Instruments Act, 1881, 'a bill of exchange may be discharged by cancellation. The cancellation may be made by the drawer, or by the holder of the bill. The cancellation must be made in writing, and it must be signed by the person making the cancellation. The cancellation may be made by drawing a line or lines across the face of the bill, and writing the word 'cancelled' across the bill. The cancellation may also be made by tearing or defacing the bill, provided that the intention to cancel the bill is clear.