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Under the Negotiable Instruments Act, 1881, the liability of an indorser arises when the instrument is:

Section 35 imposes liability "in case of dishonour" by the drawee, acceptor or maker, subject to notice as provided in the Act and any contrary contract or excluded…

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Under the Negotiable Instruments Act, 1881, the liability of an indorser arises when the instrument is:

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Correct answer C

Section 35 imposes liability "in case of dishonour" by the drawee, acceptor or maker, subject to notice as provided in the Act and any contrary contract or excluded liability. Further negotiation, presentment alone or loss alone does not trigger that liability.

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