Q: Elaborate section 140 of negotiable instrument act, 1881 ?
Ans: The drawer can not say that even if he had given cheque to holder but he didn't know that cheque would get bounced due to insufficient balance or any other reason. Such type of defence is not allowed in section 138 of negotiable Instrument act by prosecution.
If the cheque was issued in due diligence, the drawer would be liable but he can take the defence.
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