B issued a cheque for Rs.1,25,000 in favour of S. B had sufficient amount in his account with the Bank.The cheque was not presented within reasonable time to the Bank for payment and the Bank in the m

Question

Vaishnavi · Answer

Oh okh thanks...

Sahil · Answer

No bcz bank becomes insolvent

Vaishnavi · Answer

So is b become creditor of the bank?

Sahil · Answer

No as per sec 74 of INA 1881 if cheque is not presented by holder to bank within a reasonable time and something happened with bank (bankruptcy or insolvency) then drawer is not liable. So here B is not liable to s anymore

Anaya · Answer

No , B is now not liable to S anymore.. because presentment is required to be done within a favourable time period..and the drawer is not liable for the damages due late presentment of negotiable instrument thus, S can not recover his money from B

B issued a cheque for Rs.1,25,000 in favour of S. B had sufficient amount in his account with the Bank.The cheque was not presented within reasonable time to the Bank for payment and the Bank in the m

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