Explanation:

- Option 1: Dishonored

- A cheque is dishonored when the bank refuses to pay it.

- Reasons for dishonor can include insufficient funds or suspicion of a defective title.

- Correct Answer: When a bank suspects a defective title, the cheque is often dishonored.

- Option 2: Cancelled

- Cancellation occurs when a cheque is nullified by the account holder before it is presented.

- Banks do not cancel cheques on their own.

- Option 3: Stalled

- Not commonly used in banking terms regarding cheques.

- Stalling isn’t a standard action by banks for cheques with suspected defective titles.

- Option 4: Countermanded

- Countermanding refers to the account holder instructing the bank to stop payment.

- It's an action initiated by the cheque issuer, not the bank.