CMA Foundation · Fundamentals of Business Laws and Business Communication · Negotiable Instruments Act, 1881
Under Section 72, in order to charge the drawer, a cheque must be presented at the bank upon which it is drawn:
To charge the drawer, a cheque must be presented at the bank on which it is drawn before the relation between the drawer and his banker has been altered to the drawer's prejudice, subject to Section 84.
- AOnly after the drawer is informed in writing
- BBefore the relation between the drawer and his banker has been altered to the prejudice of the drawerCorrect
- COnly at the holder's own bank branch
- DWithin three days of a notice of dishonour
Explanation
Section 72 requires presentment at the drawee bank before the drawer-banker relation is altered to the drawer's prejudice, subject to Section 84. It sets no requirement of prior written information or presentment at the holder's bank.
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