law: Negotiable Instruments Act, 1881 
  44. Partial absence or failure of money-consideration 
  When the consideration for which a person signed a promissory
  
  note, bill of exchange or cheque consisted of money and was originally absent
  
  in part, or has subsequently failed in part, the sum which a holder standing in
  
  immediate relation with such signer is entitled to receive from him is
  
  proportionally reduced.
  Explanation:  The drawer of a bill of exchange stands in
  
  immediate relation with the acceptor. The maker of a promissory note, bill of
  
  exchange or cheque stands in immediate relation with the payee, and the
  
  endorser with his endorsee. Other signers may by agreement stand in immediate
  
  relation with a holder.
  Illustration 
  A draws a bill on B for Rs. 500 payable to the order of A. B
  
  accepts the bill, but subsequently dishonors it by non-payment. A sues B on the
  
  bill. B proves that it was accepted for value as to Rs. 400, and as an accommodation
  
  to the plaintiff as to the residue. A can only recover Rs. 400.