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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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