law: Negotiable Instruments Act, 1881 
  84. When cheque not duly presented and drawer damaged
  
  thereby  
  25[(1) Where a cheque is not presented for payment within a
  
  reasonable time of its issue, and the drawer or person on whose account it is
  
  drawn had the right, at the time when presentment ought to have been made, as
  
  between himself and the banker, to have the cheque paid and suffers actual
  
  damage through the delay, he is discharged to the extent of such damage, that
  
  is to say, to the extent to which such drawer or person is a creditor of the
  
  banker to a large amount than he would have been if such cheque had been paid.
  (2) In determining what is a reasonable time, regard shall be
  
  had to the nature of the instrument, the usage of trade and of bankers, and the
  
  facts of the particular case.
  (3) The holder of the cheques as to which such drawer or person
  
  is so discharged shall be a creditor, in lieu of such drawer or person, of such
  
  banker to the extent of such discharge and entitled to recover the amount from
  
  him.
  Illustrations  
  (a) A draws a cheque for Rs. 1,000, and, when the cheque ought
  
  to be presented, has funds at the bank to meet it. The bank fails before the
  
  cheque is presented. The drawer is discharged, but the holder can prove against
  
  the bank for the amount of the cheque.
  (b) A draws a cheque at Umballa on a bank in Calcutta. The bank
  
  fails before the cheque could be presented in ordinary course. A is not
  
  discharged, for he has not suffered actual damage through any delay in
  
  presenting the cheque.