Library/NIA/Section 131A
Section 131ASubstantive

Application of Chapter to drafts

Full Text

Application of Chapter to drafts.—The provisions of this Chapter shall apply to any draft, as defined in section 85A, as if the draft were a cheque.

Plain English Summary

Extends all statutory crossing and banking protection provisions of Chapter XIV to bank demand drafts.

Key Legal Elements

  • Applies Chapter XIV rules to bank drafts as defined in Section 85A
  • Demand drafts receive identical legal treatment as crossed cheques
  • Protections of Sections 123 to 131 fully apply to drafts

Practical Note

Ensures that crossing a Bank Demand Draft (DD) with Account Payee or parallel lines enjoys identical legal protection as a crossed cheque. A bank honoring a crossed draft over the counter or collecting it into a fraudulent account faces the same statutory liabilities as with cheques.

हिंदी पाठ

अध्याय का ड्राफ्टों पर लागू होना।—इस अध्याय के उपबंध धारा 85क में परिभाषित किसी भी ड्राफ्ट पर इस प्रकार लागू होंगे मानो वह ड्राफ्ट कोई चेक हो।