9.7 Discharge and Remedies

The discharge: the payment in due course; the waiver (the cancellation-and-relinquishment); the material alteration (the instrument's corruption — the discharge except the holder-in-due-course's HDC-protection); the limitation's expiry. The remedies: the suit on the instrument (the summary procedure — the commercial court's craft; the presumption-of-consideration (the defendant's burden)); the order-and-decree (the amount + the interest + the costs); the criminal face (the cheque-dishonour's penal track (the NIA's criminal liability for the dishonest dishonour — the Nepal statute's own craft (the functional describe (the "138-type" Indian parallel noted as comparative))). Exam Focus Long questions (the unit is the paper's doctrinal core): (i) The negotiable instruments' types-and-characteristics (the trio — the banker); (ii) The holder-in-due- course's craft (the magic title); (iii) The endorsement's types + the notice-of-dishonour machinery. Short questions: the HDC's conditions; the crossing; the noting-and-protest; the primary-vs-secondary liability. Trick areas: (i) The PROMISSORY note = the maker's PROMISE; the BILL = the drawer's ORDER; the CHEQUE = the bill on a BANK — the definitions' precision; (ii) The HOLDER IN DUE COURSE takes free of defects — the ordinary holder does NOT (the magic's boundary); (iii) The forged INDORSEMENT passes no title (the true owner protected) — the contrast with the forged DRAWER's signature (the bank's loss — Unit 5.1); (iv) The notice-of-dishonour's failure DISCHARGES the indorser (the conditional liability's trigger);…