No, an offence of cheque bounce under Section 138 of the NI Act cannot be made out if the cheque was given as a gift or in charity, because:
✅ Key Reason:
Section 138 applies only when the cheque is issued for discharge of a legally enforceable debt or liability.
⚖️ Legal Principle:
• If there’s no legal obligation to pay (as in the case of a gift or donation), the basic condition for Section 138 is not satisfied.
A gift or charity cheque does not attract Section 138 of the NI Act, as there is no legally enforceable liability behind such payment.
No,it is not an offence if the cheque is made as a gift or in charity accoding to the Section 138 of the Negotiable Instruments Act because sec. 138 requires that the cheque be issued in discharge of a legally enforceable debt or liability. A gift cheque does not fulfill this criterion, as it is not issued to settle a debt or obligation but is given voluntarily as a gift. Therefore, if a cheque given as a gift or for charity is dishonoured, the drawer cannot be prosecuted under Section 138 of the Negotiable Instrument Act.
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