The liability of a banker for wrongful refusal to honour a cheque is
Question and options
The liability of a banker for wrongful refusal to honour a cheque is
- to the payee
- to the drawer
- to both payee and drawer
- to none
Answer and explanation
Correct answer: B - to the drawer
A banker who wrongfully dishonours a cheque is liable to the drawer (its customer) for loss of credit (Section 31, Negotiable Instruments Act). It owes no duty to the payee.
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