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A drawee of a cheque with sufficient funds who refuses to pay must:
ACompensate the drawer
BCompensate the drawee
CCompensate the banker
DCompensate the bearer
Answer & Solution
Correct answer: A. Compensate the drawer
1. The funds must be properly applicable to the cheque.
2. The banker must then pay when duly required.
3. In default it compensates the drawer for the loss.
_Source: The Negotiable Instruments Act, 1881 (India Code)_
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