Why Demand draft cannot be dishonoured?

A demand draft cannot be dishonored because it is a prepaid instrument, meaning the funds are already withdrawn from the payer's account at the time of issuance. The issuing bank guarantees the payment to the payee once the draft is presented for encashment, ensuring that the amount is available. Since the funds are secured and held by the bank, there is no risk of insufficient funds that could lead to dishonor.