Answer By law4u team
Under Section 138 of the Negotiable Instruments Act, 1881, a cheque bounce case can only be filed if the cheque is drawn by a person who is legally capable of entering into a contract. Key Points: 1. Minors Cannot Be Held Liable: - A minor cannot be prosecuted under Section 138 because they are not legally competent to enter into a contract under the Indian Contract Act, 1872. 2. Cheque Issued on Behalf of a Minor: - If a cheque is issued by a guardian or legal representative on behalf of a minor, then the guardian or representative can be held liable if the cheque bounces. - The liability depends on whether the person issuing the cheque did so in their personal capacity or on behalf of the minor. 3. Guardian’s Liability: - If the guardian issues the cheque for personal liabilities or commitments, they can be held liable under Section 138. - If the cheque is purely for the minor’s interest (like managing a minor’s account), it may not attract prosecution under Section 138.
