Question

Under Section 85, a banker making payment of an order cheque in due course is discharged even if the endorsement turns out to be what?

Q: Answer-Under Section 85, a banker making payment of an order cheque in due course is discharged even if the...

Section 85 of the Negotiable Instruments Act protects a paying banker who pays an order cheque in due course on an endorsement that appears regular. The banker is discharged from liability even if the endorsement is later found to be forged or made without authority, provided the payment was in due course. This protection is essential because a banker cannot verify the genuineness of every endorsement. It enables banks to honour cheques without undue risk.