Under Section 129 of the Negotiable Instruments Act, 1881, a banker who pays a crossed cheque otherwise…
Section 129 makes such a banker "liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid". The liability is compensation…
Choose your answer
Under Section 129 of the Negotiable Instruments Act, 1881, a banker who pays a crossed cheque otherwise than in accordance with the crossing is liable for:
Answer and explanation
Correct answer A
Section 129 makes such a banker "liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid". The liability is compensation for the true owner's loss, not a fine of twice the amount, which comes from s.138, or interest under s.117.
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