Sec 88 in relation to Sec 119.

Instances when instrument may be

discharged (Payment in due course causes the discharge of the person
primarily liable):
1. Upon payment by the person primarily liable on or after date of
maturity without knowledge of any defect.
2. Payment by agent of the principal debtor made in payment in due
course.
3. Payment by an accommodated party.
- The party accommodated is really the person indebted. He is ought to
be liable to the instrument. The accommodation party only lends his
name. Thus, deemed to be made by the person primarily liable.
4. If instrument is cancelled and destroyed.
Discharge in negotiable instrument doesnt mean cancellation. It means it
ceases to be negotiable. Hence, the release of all persons liable to the
instrument, both primarily and secondarily; due to cessation of negotiability
of the instrument. So already unenforceable.
When can the cancellation cause the discharge of the instrument?