Section 56: Damages against parties

56. Damages against parties (1) Where a bill is dishonoured, the holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an indorser who has been compelled to pay the bill may recover from the acceptor, or from the drawer, or from a prior indorser— (a) the amount of the bill; B7 – 21 [Issue 1] Bills of Exchange Act (b) interest on it from the time of presentment for payment if the bill is payable on demand, and from the maturity of the bill in any other case; (c) the expenses of protest and of notice of protest, which shall be deemed to be liquidated damages. (2) (a) In lieu of the above damages, the holder may, in the absence of any contrary stipulation, recover from the drawer or indorser, and the drawer or an indorser who has been compelled to pay the bill may recover from any party liable to him, the amount payable by means of a redraft or fresh bill drawn at sight. (b) The redraft shall include, beside the sums mentioned above— (i) the rate of exchange for bills at sight at the place where the redraft is drawn or the place where the drawer or indorser, as the case may be, resides; and (ii) the cost of stamps. (3) Where by this Act interest may be recovered as damages, that interest may, if justice requires it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.