alleryStart learning →An indorser who delivers before maturity is liable on dishonour to:
AOnly the drawer
BEvery later holder
COnly next indorsee
DOnly the payee named
Answer & Solution
Correct answer: B. Every later holder
Section 35 binds the indorser to compensate every subsequent holder if the drawee, acceptor or maker dishonours, subject to due notice.
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Related questions
The Negotiable Instruments Act was passed as Act No. 26 of the year:The 2002 amendment of the Act inserted new sections numbered:Criminal liability for cheque dishonour entered the Act through an amendment of:Interim compensation in cheque dishonour cases was added by the Act of:Interim compensation under Section 143A must ordinarily be paid within:Interim compensation under Section 143A cannot exceed what share of the cheque?Cheque dishonour trials under the Act should aim to end within:Which court may try a Section 138 offence?