What is the Liability of drawee of cheque?, What is the Liability of maker of note and acceptor of bill? Liability of drawee of cheque and Liability of maker of note and acceptor of bill are defined under Section 31 and 32 of Negotiable Instruments Act 1881
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.
In the absence of a contract to the contrary, the maker of a promissory note and the acceptor before maturity of a bill of exchange are bound to pay the amount thereof at maturity according to the apparent tenor of the note or acceptance respectively, and the acceptor of a bill of exchange at or after maturity is bound to pay the amount thereof to the holder on demand.
In default of such payment as aforesaid, such maker or acceptor is bound to compensate any party to the note or bill for any loss or damage sustained by him and caused by such default.
CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES