Negotiable Instrument Act - Section 138

Corporate & Other Laws

I have doubt on Question number - 3(B) Answer is given as - No,Rahul is not liable.But How ?

Naren

CA Inter

★ 90K+

17-Sep-21 16:59

702

Answers (1)

Best Answer

There is mistake in drawing of the cheque as it is made payable to "sell or order". It should have been made payable to "Samrat or order". Therfore, section 138 doesn't apply. Section 138 applies in case of genuine dishonour of cheque and further lack of will of drawer to honor payment.

CA YOGITA HARJANI

Faculty

17-Sep-21 23:29