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CA Foundation · Business Laws · The Negotiable Instruments Act, 1881

Imran holds a cheque drawn by Joshi on a bank. Imran presents it for payment to Joshi personally at Joshi's office instead of to the bank. Joshi refuses to pay. What is the legal position?

The presentment is not valid. A cheque is drawn on a specified banker, so it must be presented to that bank for payment. Showing it to the drawer personally does not count as presentment and cannot support a claim for dishonour.

  1. AValid presentment, since the drawer is the person ultimately liable
  2. BValid presentment because a cheque is payable on demand to any person
  3. CNot a valid presentment of a cheque, since a cheque must be presented to the banker on whom it is drawnCorrect
  4. DValid only if made within banking hours

Explanation

A cheque is a bill drawn on a specified banker, so it must be presented to that banker for payment. Presenting it to the drawer is not proper presentment, hence the drawer cannot be charged for dishonour on that basis. Banking hours matter for presentment at the bank but do not cure a presentment made to the wrong person.

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