Economics • Banking & FinanceEasy
Which section of the Negotiable Instruments Act, 1881 defines a 'Cheque' in Indian law?
A. Section 4
B. Section 5
C. Section 6✓ Correct Answer
D. Section 138
💡 Solution & Explanation
Section 6 of the Negotiable Instruments Act, 1881 formally defines a cheque as a bill of exchange drawn on a specified banker payable strictly on demand. Section 4 defines promissory notes, while Section 138 deals with penalties for dishonored cheques due to insufficient funds.
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