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Can an offence of cheque bounce/ dishonour of a cheque be made out if the cheque was given as a gift or in charity ?

Posted by jobseeker Sparsh Bhardwaj | Approved
Answers (2)

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.

Answered by jobseeker Krish Chandna | Approved

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.

Answered by jobseeker Poonam Kumari | Approved

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