Banking · Negotiable Instruments Act
A customer issues a cheque for ₹5,000 (both in figures and words). The payee chemically washes the written words and figures, leaving no visible trace of the alteration, and successfully writes the new amount as ₹50,000. Under which Section of the Negotiable Instruments Act, 1881 is the paying bank protected from liability for making this payment in due course?
- 1Section 131
- 2Section 89✓
- 3Section 85
- 4Section 45A
Correct answer
Section 89
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