Negotiable Instruments Act Section 30 — Liability of drawer

CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES.

General

Summary

If a bill of exchange or cheque is not honoured by the person who is supposed to pay it, the person who wrote it must compensate the person holding it. This obligation only applies if the writer was properly notified that the payment was not honoured, as required by the law.

Official Text

The drawer of a bill of exchange or cheque is bound, in case of dishonour by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided.