Question

Bouncing of a cheque is not an offence in one of the following circumstance :

• A. Cheque given for clearing a debt
• B. Cheque given as donation
• C. Cheque given to clear a loan
• D. Cheque given for purchase of a car

Answer 1

Answer:

B. Cheque given as donation

• Bouncing of cheques is mentioned in section 138 of NI Act.

• Bouncing of Cheque' means when an account does not have sufficient balance to honour the cheque issued by the customer "Fund Insufficient".