Negotiable Instruments Act--Section 138--Dishonour of Cheque--Cheque Presented for Full Amount Without Endorsement of Part Payment Under Section 56 Does Not Represent Legally Enforceable Debt to Attract Offence Under Section 138
Section 138 of the Negotiable Instruments Act, 1881 is attracted on dishonour of a cheque only if the cheque represents a legally enforceable debt at the time of presentation. Where part payment has been made after issuance of a cheque, such payment must be endorsed on the cheque as mandated under Section 56 of the NI Act. Presentation of a cheque for the full amount, without recording endorsement of part payment already made, means the cheque does not represent the legally enforceable debt, and dishonour of such a cheque does not attract the offence under Section 138.
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