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