Read the following statements carefully. State whether True/False with reasons: In case the banker refuses payment wrongfully, then he is liable only to the drawer of the cheque and not to any endorsee or holder.
CS Professional · Banking - Law & Practice · PYQS · June 2022
Read the following statements carefully. State whether True/False with reasons: In case the banker refuses payment wrongfully, then he is liable only to the drawer of the cheque and not to any endorsee or holder.
Answer & Explanation:
True: A bank is liable for dishonour of the cheque, to the drawer (his customer) only and not to the payee or the holder of the cheque as there is no privity of contract between the bank and the payee or the holder.
Topics: Negotiable Instruments
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