Site navigation

Under section 138 of the Negotiable Instruments Act, 1881, the cheque must be issued for discharge of:

Section 138 applies only to a cheque issued "for the discharge, in whole or in part, of any debt or other liability", and its Explanation limits this to a "legally…

Choose your answer

Under section 138 of the Negotiable Instruments Act, 1881, the cheque must be issued for discharge of:

Select one answer
Answer and explanation

Correct answer C

Section 138 applies only to a cheque issued "for the discharge, in whole or in part, of any debt or other liability", and its Explanation limits this to a "legally enforceable debt or other liability". A cheque given as a gift, a donation or for a purely moral obligation does not meet that requirement.

Practice for these exams

Related exam syllabi

Related questions in this topic