Under the Negotiable Instruments Act, 1881, a banker who receives payment of a crossed cheque is…
Section 131 of the Negotiable Instruments Act protects collection "for a customer" in good faith and without negligence, subject to the crossed-cheque conditions. Collecting…
Choose your answer
Under the Negotiable Instruments Act, 1881, a banker who receives payment of a crossed cheque is protected if he receives it:
Answer and explanation
Correct answer A
Section 131 of the Negotiable Instruments Act protects collection "for a customer" in good faith and without negligence, subject to the crossed-cheque conditions. Collecting solely on the banker’s own account or for a person with no customer relationship does not meet that requirement; a bank is not excluded merely because the customer is another bank.
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