section 138

Querist : Anonymous (Querist) 05 April 2010 This query is : Resolved
will a cheque marked CASH, if returned attract section 138?

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Vinod kashyap (Expert) 05 April 2010
No its not covered in "negotiable instrument"

Parthasarathi Loganathan (Expert) 05 April 2010
Vinod in incorrect. Cheque is amply covered under the provisions of NI Act

Guest (Expert) 05 April 2010
Unless the cheque is drawn on someone by name as "Pay Mr......" and if it is dishonoured, it attracts the wrath of s.138 of N.I. Act. But you say its marked "Pay Cash", then its not an offence u/s.138 N.I. Act, because no offence is committed against anybody by name and the cheque is returned across the Cash Counter.

H. S. Thukral (Expert) 05 April 2010
I go with Mr. Parthasarathi. A cheque drawn as "self" if bounced for insufficient funds comes within the mischief of section 138 of NI Act.

mahendrakumar (Expert) 06 April 2010
I do agree with Mr.Parthasarathi. There is no difference whether the cheque is cash/bearer/order/account payee/crossed etc.

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