Final answer:
The ability to recover losses due to a bank failure when a check is not drawn on time depends on specific circumstances, banking regulations, consumer protection laws, and individual bank policies, rather than the Negotiable Instruments Act, 1881.
Step-by-step explanation:
If we did not draw a check on time due to a bank failure, the possibility of recovering the loss according to the Negotiable Instruments Act, 1881 largely depends on the legislation and banking regulations applicable in the specific jurisdiction. In the United States, where banking regulation has evolved especially after the issues highlighted by bank runs and the 2008-2009 recession, the laws focus on ensuring that banks maintain a level of security to prevent failures that could lead to customer losses. While historically, during events of a bank run, depositors who withdrew their funds earliest would get their money and others might lose out, modern banking systems attempt to prevent such situations with measures like federal deposit insurance.
Therefore, in the context of recovering a loss due to a bank failure when a check is not drawn on time, it would typically fall under banking regulations rather than the Negotiable Instruments Act. In many cases, consumer protection laws and deposit insurance schemes could help in partially or fully recovering such losses. Moreover, much would depend on specific circumstances and the individual bank's policies that could affect the outcome of any such recovery attempts.
If the question pertains to international banking or the application of the Negotiable Instruments Act, 1881, which originated in India, then additional legal advice from that jurisdiction would be necessary to determine the possibility of recovery.