Section 82 in The Negotiable Instruments Act, 1881

82. Discharge from liability-- The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon-

(a) by cancellation; to a holder thereof who cancels such acceptor' s or indorser' s name with intent to discharge him, and to all parties claiming under such holder;

(b) by release; to a holder thereof who otherwise discharges such maker, acceptor or indorser, and to all parties deriving title under such holder after notice of such discharge;

1. Subs. by Act 30 of 1926, s. 2, for" except in cases provided for by the Code of Civil Procedure, section 532".

2. Subs. by Act 66 of 1988, s. 2 (w. e. f. 30- 12- 1988 ).

(c) by payment, to all parties thereto, if the instrument is payable to bearer, or has been indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount due thereon.