Section 131 - Non-liability of banker receiving payment of cheque,
Section 131A - Application of Chapter to drafts, Section 132 - Set
of bills : Negotiable Instruments Act 1881
What is Non-liability of banker receiving payment of cheque? What is
Application of Chapter to drafts? What is Set of bills?
Non-liability of banker receiving payment of cheque, Application of
Chapter to drafts and Set of bills are defined under Section
131, 131A and 132 of Negotiable
Instruments Act 1881
Section 131 of Negotiable Instruments Act 1881: "Non-liability
of banker receiving payment of cheque"
A banker who has in good faith and without
negligence received payment for a customer of a
cheque crossed generally or specially to himself
shall not, in case the title to the cheque proves
defective, incur any liability to the true owner of
the cheque by reason only of having received such
Explanation I - A banker receives payment of a crossed cheque
for a customer within the meaning of this section
notwithstanding that he credits his customer's account with the
amount of the cheque before receiving payment thereof.
Explanation II - It shall be the duty of the banker who
receives payment based on an electronic image of a truncated
cheque held with him, to verify the prima facie genuineness of
the cheque to be truncated and any fraud, forgery or tampering
apparent on the face of the instrument that can be verified with
due diligence and ordinary care.
Section 131A of Negotiable Instruments Act 1881: "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.
Section 132 of Negotiable Instruments Act 1881: "Set
Bills of exchange may be drawn in parts, each part being
numbered and containing a provision that it shall continue
payable only so long as the others remain unpaid. All the parts
together make a set; but the whole set constitutes only one
bill, and is extinguished when one of the parts, if a separate
bill, would be extinguished.
Exception : When a person accepts
or indorses different parts of the bill in favour of different
persons, he and the subsequent indorsers of each part are liable
on such part as if it were a separate bill.