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      Question

      Mr. Arvind drew a bill of exchange of ₹1,00,000

      payable after 3 months on Mr. Rohit, who accepted the bill. Before maturity, Mr. Arvind endorsed the bill to Mr. Suresh. On the due date, Mr. Rohit defaulted. Who is primarily liable now?
      A Mr. Arvind Correct Answer Incorrect Answer
      B Mr. Rohit Correct Answer Incorrect Answer
      C Mr. Suresh Correct Answer Incorrect Answer
      D The bank Correct Answer Incorrect Answer
      E No one Correct Answer Incorrect Answer

      Solution

      The acceptor of a bill (Mr. Rohit) is primarily liable to pay on the due date. Endorsement transfers the right to receive payment, not the liability to pay unless the endorser guaranteed it (which is secondary).

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