Manoj gives Rs. 50,000 to Raju as gift through a cheque issued in favour of Raju. Afterwards
Manoj is not laible for an offence... since the drawer of a cheque is liabble only if a cheque is issued to discharge a lega;ly enforceable debt or other liablity and in this case the cheque has been issued to Raju as a gift and not for discharge of a legally enforceable debt
In instant case Manoj informs bank to stop payment of cheque may be due to following reasons:-
• Due to fund insufficiency in bank account
• Due to change of decision for not to gift to Raju Rs. 50,000
If stop payment is due to insufficient fund in bank account then it is actionable under section 138 of Negotiable instruments Act, 1981.
As there is no existing debt or liability at the time of presentation of cheque, it's not an offence.
Irrespective of cheque issued as a gift or payment of a legal debt without having sufficient fund, it will be an offence punishable under law.
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