Question

what is payment in due course?

Answer 1

Payment in due course refers to apayment in keeping with the evident tenor of the instrument, in good faith & without negligence to any person in possession there of. Payment is made in money & money only. As per Sections 10 & 128, a paying banker making payment in due course is protected.

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Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount there in mentioned.