Question

What is the liability of drawee of cheque under Negotiable Instruments Act 1881?

A Payment of cheque when required Correct Answer Incorrect Answer
B In case of default, compensate the drawer for loss or damage Correct Answer Incorrect Answer
C Inform the drawer of insufficient funds in account Correct Answer Incorrect Answer
D Both a and b Correct Answer Incorrect Answer

Solution

Section 31- Liability of drawee of cheque—The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and , in default of such payment, must compensate the drawer for any loss or damage caused by such default.

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