Estoppel of acceptor of bill of exchange, bailee or licensee:
No acceptor of a ‘bill of exchange shall be permitted to deny that the drawer had authority to draw such bill or to endorse it; nor shall any bailee or licensee be permitted to deny that his bailor or licensor had, at the time when the bailment or licence commenced, authority to make such bailment or grant such licence.
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ADVERTISEMENTS:
Explanation 1:
The acceptor of a bill of exchange may deny that the bill was really drawn by the person by whom it purports to have been drawn.
Explanation 2:
ADVERTISEMENTS:
If a bailee delivers the goods bailed to a person other than the bailor, he may prove that such person had a right to them as against the bailor.
Comments:
Section 117 deals with estoppel in respect of movable property. An estoppel under this section is based on agreement. The section is supplemented by Sections 41 and 42 of the N.I. Act. It is applicable to:
(i) Against the acceptor of a bill of exchange.
ADVERTISEMENTS:
(ii) Against the bailee, and
(iii) Against a licensee.
Acceptor of a bill of exchange:
An acceptor of a bill of exchange is not permitted to deny that the drawer had authority to draw or to endorse it. But there is an exception laid down in Explanation-I which provides that the acceptor of a bill of exchange may deny that the bill was really drawn by the person by whom it purports to have been drawn.
Bailee:
A bailee of goods cannot be permitted to say that at the time of commencement of the bailment, the bailor has no authority to bail or to take them back. Under the Explanation-II, if a bailee delivers the goods bailed to a person other than the bailer, he may prove that such person had a right to them as against the bailor. A garage owner receiving a car for repairs is estopped from challenging the title of the person from when the car was received.
License:
Same rule is applicable here as applied in bailment.