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    Question

    In case of cheque dishonour due to insufficient funds,

    who is legally liable under Section 138 of the Negotiable Instruments Act?
    A Drawee bank Correct Answer Incorrect Answer
    B Drawer (account holder) Correct Answer Incorrect Answer
    C Payee Correct Answer Incorrect Answer
    D Collecting bank Correct Answer Incorrect Answer
    E RBI Correct Answer Incorrect Answer

    Solution

    Drawer is liable under Section 138 NI Act for dishonour of cheque due to insufficiency of funds.

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