Liability of drawee of cheque
Full Text
Liability of drawee of cheque.—The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default.
Plain English Summary
Obligates the drawee bank to pay a cheque if the drawer has sufficient applicable funds, making the bank liable to compensate the drawer for damages if it defaults.
Key Legal Elements
- The drawee (bank) must have sufficient funds of the drawer
- The funds must be properly applicable to the payment of the cheque
- The bank must pay the cheque when duly required
- In default of payment, the bank must compensate the drawer for loss or damage
Practical Note
Statutory basis for suing a bank for wrongful dishonour. If a bank wrongfully bounces a cheque (e.g., due to a technical error despite sufficient funds), the drawer can sue the bank for damages under Section 31, especially for loss of reputation/business credit.
हिंदी पाठ
चेक के आहारी (बैंक) का दायित्व।—चेक के आहारी (बैंक) जिसके पास आहर्ता (खाताधारक) का पर्याप्त धन उपलब्ध है, जो चेक के भुगतान के लिए उचित रूप से लागू होने योग्य है, चेक का भुगतान करने के लिए विधिवत मांगे जाने पर अवश्य भुगतान करेगा, और ऐसे भुगतान के अभाव (व्यतिक्रम) में, उस व्यतिक्रम के कारण होने वाले किसी भी नुकसान या क्षति के लिए आहर्ता की क्षतिपूर्ति करेगा।