18th July because there happens a sudden strike on the maturity date and next day it is Sunday.

Possible response:

Due Date of a Bill of Exchange Affected by Bank Strike and Weekend

A bill of exchange is a financial instrument that represents a written promise by one party to pay a fixed amount of money to another party at a specified time and place. The due date of a bill of exchange is the date on which the payment becomes due and the holder of the bill can demand it from the drawer or acceptor. However, if the due date falls on a bank strike or a holiday, the situation may change.

Bank Strike and Weekend Impact on the Due Date of a Bill of Exchange

In the given scenario, the bill of exchange matures on 16th July. However, a bank strike is declared, which means that the banks will not be operational on that day. The next day is a Sunday, which is also a non-working day for banks. Therefore, the question arises, what will be the due date of the bill of exchange?

Possible Options and Reasons for the Due Date of a Bill of Exchange

(a) 15th July: Some might argue that since the bank strike affects the 16th July, the due date of the bill should be advanced to the previous working day, which is 15th July. However, this assumption may not be correct, as the bill of exchange is a negotiable instrument that has a fixed term of payment. The holder of the bill cannot unilaterally change the due date, unless there is a specific provision in the bill or an agreement between the parties.

(b) 17th July: Others might argue that since the bank strike and the weekend together cause a delay in the payment, the due date of the bill should be postponed to the next working day, which is 17th July. This assumption may have some merit, as the general rule is that if the due date falls on a non-working day, the payment can be made on the next working day without any penalty or default.

(c) 18th July: However, a more accurate answer would be that the due date of the bill of exchange in this case would be 18th July. This is because the bill of exchange has a term of three days, which means that the payment can be made within three days from the due date, including the due date. Therefore, if the due date falls on a non-working day, the payment can be made on the next working day, which is 17th July. However, since the bill of exchange has a grace period of three days, the payment can be made until 18th July, without any penalty or default.

Conclusion

In conclusion, the due date of a bill of exchange can be affected by various factors, such as bank strikes, weekends, and grace periods. However, the general rule is that the due date remains fixed, unless there is a specific provision or agreement that allows for a change. In the given scenario, the due date of the bill of exchange would be 18th July, as it has a grace period of three days.