Article 32: (Art. 70 of the Act of 1908):
The period of limitation for a suit on a bill of exchange payable at sight, or after sight, but not at a fixed time is three years and limitation starts to run when the bill is presented.
Image Source: commercepk.com
ADVERTISEMENTS:
Article 32 only governs a suit on bill of exchange and not one on a promissory note.
According to Negotiable Instruments Act, 1881, the expression ‘at sight’ means ‘on demand’ and ‘after sight’ means ‘after acceptance’. Even though under the Negotiable Instruments Act, the bill payable at sight is payable on demand yet for the purpose of Limitation Act a bill of exchange payable at sight does not mean payable on demand.
Art. 32 would apply to suits on a bill of exchange when the claim is not sustainable unless a presentment had been made for payment. Therefore for a suit against acceptor or drawee Article 32 would apply. But for a suit against the drawer or maker, Article 32 would not apply.
As promissory note is covered by Art. 32, a suit on promissory note payable at sight or after sight for which presentment for payment is necessary the residuary Article of 113 of the Limitation Act, 1963 would apply.