Question

Murtaza drew a cheque for Rs. 50,000 in favor of his landlord Abdullah. The cheque was not presented for payment by Abdullah within a reasonable time of its issue. Murtaza suffered damage of Rs. 30,000 through the delay because the bank failed. Describe whether Abdullah can recover the money in the above ˚umstances as per the Negotiable Instruments Act, 1881.

a) Yes, Abdullah can recover the full amount.
b) No, Abdullah cannot recover any amount.
c) Abdullah can recover only a portion of the amount.
d) The Act does not provide any remedy in this situation

Answer 1

According to the Negotiable Instruments Act, Abdullah cannot recover the full amount of the cheque, but he can recover a portion of it based on the damage suffered by Murtaza due to the delay.

Step-by-step explanation:

According to the Negotiable Instruments Act, 1881, if a cheque is not presented for payment within a reasonable time, the drawer (Murtaza) will be discharged from liability to the extent of the damage caused by the delay. In this case, Murtaza suffered a damage of Rs. 30,000 because the bank failed to pay due to the delay.

Therefore, Abdullah (the landlord) cannot recover the full amount of Rs. 50,000, but he can recover a portion of it. The exact amount that Abdullah can recover will be determined based on the proof of the damage caused to Murtaza and the relationship between the amount of the cheque and the damage suffered.