law: Negotiable Instruments Act, 1881 
  82. Discharge from liability 
  The maker, acceptor or endorser respectively of a negotiable
  
  instrument is discharged from liability thereon- 
  (a) By cancellation-to a holder thereof who cancels such
  
  acceptor's or endorser'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 endorser, and to all parties deriving title under such
  
  holder after notice of such discharge;
  (c) By payment-to all parties thereto, if the instrument is
  
  payable to bearer, or has been endorsed in blank, and such maker, acceptor or
  
  endorser makes payment in due course of the amount due thereon.