New Enroll in RBI Grade B New Batch - Starts on May 21

    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.

    Practice Next