________ is the nature of liability of drawer for issuing cheques without funds.
Question and options
________ is the nature of liability of drawer for issuing cheques without funds.
- Tortious liability
- Absolute liability
- Non-compoundable liability
- Criminal liability
Answer and explanation
Correct answer: D - Criminal liability
Dishonour of a cheque for insufficiency of funds is an offence under section 138 of the Negotiable Instruments Act, 1881, so the drawer incurs criminal liability besides civil liability for the amount. The offence is compoundable under section 147, and the liability is neither tortious nor 'absolute' in the sense of the tort rule.
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