Under Section 140, is it a defence that the drawer expected the cheque to clear?
AYes, a complete defence
BYes, if amount small
CNo, it is no defence
DYes, if first offence
Answer & Solution
Correct answer: C. No, it is no defence
Section 140 denies the defence that the drawer had no reason to believe the cheque would be dishonoured.
Keep practising Negotiable Instruments Act 1881
Browse all Negotiable Instruments Act 1881 questions for CA Foundation, or explore more Businesslaw topics.
Related questions
The Negotiable Instruments Act was passed as Act No. 26 of the year:The 2002 amendment of the Act inserted new sections numbered:Criminal liability for cheque dishonour entered the Act through an amendment of:Interim compensation in cheque dishonour cases was added by the Act of:Interim compensation under Section 143A must ordinarily be paid within:Interim compensation under Section 143A cannot exceed what share of the cheque?Cheque dishonour trials under the Act should aim to end within:Which court may try a Section 138 offence?