Section 92 of NIA : Section 92: Dishonour By Non-Payment
NIA
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Explanation using Example
Imagine John issues a cheque to Sarah for $500. Sarah presents the cheque at her bank for payment, but John's account does not have sufficient funds, and the bank refuses to pay. John has thus made a default in payment upon being duly required to pay the same, and according to Section 92 of The Negotiable Instruments Act, 1881, the cheque is said to be dishonoured by non-payment.
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