3. Dishonour of cheque by a banker without any justifiable reason is called
(A) Valid dishonour of cheques
(B) Unmindful dishonour of cheques
(C) Negligence dishonour of cheques
(D) Wrongful dishonour of cheques
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in india the law regulatng the negotiable instrument or are
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Dishonour of cheque by a banker without any justifiable reason is called (D) Wrongful dishonour of cheques
Explanation:
- Wrongful dishonour refers to a bank's inability to honour a lawful negotiable instrument given for payment, such as a check or draught.
- When a bank or credit union refuses to respect a lawful check or draught delivered to it, this is known as wrongful dishonour.
- If it is proven that unjust dishonour occurred on its watch, a bank is accountable for the error.
- A check or draught delivered to a bank with insufficient cash is referred to as dishonour.
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