Under Section 135 of the Negotiable Instruments Act, 1881, the law of the place where the instrument is…
Section 135 makes the law of the place where the instrument is made payable decide "what constitutes dishonour and what notice of dishonour is sufficient". The drawer's…
Choose your answer
Under Section 135 of the Negotiable Instruments Act, 1881, the law of the place where the instrument is made payable determines what constitutes dishonour. The same law also determines:
Answer and explanation
Correct answer D
Section 135 makes the law of the place where the instrument is made payable decide "what constitutes dishonour and what notice of dishonour is sufficient". The drawer's liability is instead governed by the law of the place where he made the instrument under section 134, and section 135 says nothing about stamp duty or the capacity of the parties.
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