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Q.100
Contract, Specific Relief, Property & NI Act Medium Act + Section Given
Bare Act Negotiable Instruments Act, 1881 · Section 138

What is main objective of Section 138 of Negotiable Instruments Act?

A Recovery of stolen property
B Recovery of seized vehicles from RTO
✓ Recovery of the cheque amount in case cheque issued by the payer is bounced Answer
D None of the above
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Explanation & Strategy

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Section 138 NI Act's main objective is recovery of cheque amounts when cheques are dishonoured due to insufficient funds. It creates a criminal liability (imprisonment up to 2 years + fine up to twice the cheque amount) to discourage issuing bad cheques.

  1. 1 Look up the referenced provision in Negotiable Instruments Act, 1881 to verify the answer.
At a Glance
Subject Contract, Specific Relief, Property & NI Act
Difficulty Medium
Act Negotiable Instruments Act, 1881
Section Section 138
Answer (C) Act + Section Given
Paper AIBE XII — June 2018
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📖 Open Book — Reading Mode Negotiable Instruments Act, 1881