Negotiable Instruments Act Section 31 — Liability of drawee of cheque

CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES.

General

Summary

If a bank has enough money belonging to the account holder to cover a cheque, it must pay that cheque when it is properly presented. If the bank fails to pay without a valid reason, it is responsible for compensating the account holder for any loss or damage caused by that failure.

Official Text

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.