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        Indian Laws

        Section 31 - Liability of drawee of cheque

        Negotiable Instruments Act, 1881
        Chapter III
        Parties to Notes, Bills and Cheques

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        Liability of drawee of cheque requires payment where sufficient funds; failure mandates compensation to the drawer. Liability of the drawee of a cheque arises where the drawee holds sufficient funds of the drawer properly applicable to payment and must pay the cheque when duly required; failure to pay in such circumstances constitutes a default obliging the drawee to compensate the drawer for any loss or damage caused by that default.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Liability of drawee of cheque requires payment where sufficient funds; failure mandates compensation to the drawer.

                              Liability of the drawee of a cheque arises where the drawee holds sufficient funds of the drawer properly applicable to payment and must pay the cheque when duly required; failure to pay in such circumstances constitutes a default obliging the drawee to compensate the drawer for any loss or damage caused by that default.


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