Does the delay in presentation affect Mr. Mohan's right to recover the amount?
CA Foundation · Business Laws · PYQS · September 2025
Does the delay in presentation affect Mr. Mohan's right to recover the amount?
Suggested Answer and Working Notes:
No, Mr. Mohan’s right to recover the amount does not get affected due to the delay in presentation of the promissory note two days after the due date because of unforeseen circumstances as it is provided under Section 75A of the Negotiable Instruments Act,1881. (A) ALTERNATE ANSWER Yes, the delay in presentation could affect Mr. Mohan's right to recover the amount. According to section 64 of the Act, a promissory note must be presented for payment at maturity. Failure to do so may discharge the maker from liability to the extent of any loss caused by the delay.
Topics: The Negotiable Instruments Act, 1881
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