Paternott V. Monimpex Hungarian Foreign Trading Co.

1956 Present: Gunasekara, J., and Sinnetamby, J.

H. S. PATERNOTT et al., Appellants, and MONIMPEX HUNGARIAN FOREIGN
TRADING CO., Respondent

S. C. 542-D. C. Colombo, 17,976/8

Bill of exchange-Restrictive indorsement-Right of drawer to sue on bill thereafter- Bills of Exchange Ordinance, ss. 21 (3), 31 (1), 35 (2).

When a bill of exchange restrictively indorsed for collection is dishonoured on presentation for payment on maturity, the drawer to whom it is returned bearing an indorsement in blank by the indorsee is not entitled to sue upon it.

APPEAL from a judgment of the District Court, Colombo.

S. Sharvananda, for the defendants-appellants.

F. R. Dias, for the plaintiff-respondent.

Cur. adv. vult.

July 30, 1956. SINNETAMBY, J.-

At the conclusion of the arguments in this case we allowed the appeal with costs in both Courts and stated we shall give our reasons later. I now proceed to record my reasons for the decision.

The second and third defendants were sued in this case on a. Bill of Exchange drawn on them by the plaintiff company and made-payable to the National Bank of Hungary. The Bill which was m

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