Question

Liability of drawer to compensate the drawee in case of dishonor is primarily provided under–

• A. Section 29(a)
• B. Section 29
• C. Section 30
• D. Section 31

Hint:

Drawer is primarily liable; acceptor (drawee) becomes liable after acceptance.

Answer 1

The Correct Option is C

Step 1: Negotiable Instruments Act.
Section 30 provides that the drawer of a bill of exchange is bound to compensate the holder in case of dishonor by the drawee.

Step 2: Explanation.
Drawer's liability arises when the instrument is dishonored, provided due notice is given.

Step 3: Conclusion.
Hence, Section 30 governs drawer's liability.