Dishonour of Cheque--Withdrawal Slip--Withdrawal Slip Drawn on Cooperative Society Engaged in Banking Activities Constitutes a Cheque Under Section 6 of the NI Act
A withdrawal slip drawn on a cooperative society engaged in banking activities falls within the definition of "cheque" under Section 6 of the Negotiable Instruments Act. A cooperative society performing banking functions qualifies as a "banker" under Section 3 of the Act, regardless of whether it holds an RBI licence. The substance of the transaction, and not the form or nomenclature of the instrument, is determinative. If an instrument operates as a mandate for payment drawn on an account maintained with an institution carrying on banking functions, it falls within the ambit of the NI Act and a complaint under Section 138 is maintainable.
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