Which of the following circumstances will attract the provisions of Section 138 of Negotiable…
s.138 NI Act is attracted where there is "Cheque dishonour due to insufficiency of funds", where the "Cheque returned by the Bank unpaid on the ground that the account is…
Choose your answer
Which of the following circumstances will attract the provisions of Section 138 of Negotiable Instruments Act?
Answer and explanation
Correct answer D
s.138 NI Act is attracted where there is "Cheque dishonour due to insufficiency of funds", where the "Cheque returned by the Bank unpaid on the ground that the account is closed" (NEPC Micon) and where the "Cheque returned by the Bank unpaid due to stop payment instruction by drawer" (Modi Cements), so it applies "In all of the given circumstances".
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