Bills of Exchange Act 1909

Where a bill is intentionally cancelled by the holder or his or her agent, and the cancellation is apparent thereon, the bill is discharged.

In like manner any party liable on a bill may be discharged by the intentional cancellation of his or her signature by the holder or his or her agent. In such case any indorser, who would have had a right of recourse against the party whose signature is cancelled, is also discharged.

A cancellation made unintentionally, or under a mistake, or without the authority of the holder, is inoperative; but where a bill or any signature thereon appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake, or without authority.