Site navigation

Under the Negotiable Instruments Act, 1881, if a banker pays a crossed cheque in due course:

Section 128 places a banker who pays a crossed cheque in due course "in the same position in all respects" as if the amount "had been paid to and received by the true…

Choose your answer

Under the Negotiable Instruments Act, 1881, if a banker pays a crossed cheque in due course:

Select one answer
Answer and explanation

Correct answer A

Section 128 places a banker who pays a crossed cheque in due course "in the same position in all respects" as if the amount "had been paid to and received by the true owner". He is not liable to the true owner, and the drawer cannot debit him again.

Practice for these exams

Related exam syllabi

Related questions in this topic