A draws a bill on B for Rs 20,000. B accepts the bill. On maturity the bill was dishonored by non-payment. A files a suit against B for payment of Rs 20,000. B proved that the bill was accepted for value of Rs 17,000 and as an accommodation to the plaintiff for the balance amount i.e. Rs 3,000. Referring to the provisions of the Negotiable Instruments Act, 1881 decide whether A would succeed in recovering the whole amount of the bill ?
Dec. 13, 2017