A cheque is delivered for collection to a branch of the payee’s bank other than the branch where the…
The Explanation to section 142(2) provides that a cheque delivered for collection at any branch of the payee's bank "shall be deemed to have been delivered to the branch of…
Choose your answer
A cheque is delivered for collection to a branch of the payee’s bank other than the branch where the payee maintains the account. Under the Explanation to section 142(2) of the Negotiable Instruments Act, 1881, to which branch is it deemed delivered?
Answer and explanation
Correct answer A
The Explanation to section 142(2) provides that a cheque delivered for collection at any branch of the payee's bank "shall be deemed to have been delivered to the branch of the bank, in which the payee or holder in due course, as the case may be, maintains the account". Jurisdiction therefore lies where that branch is, not where the cheque happened to be handed in or where the drawer banks.
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