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Mohan, writes a cheque for Amit as a donation. Amit is engaged in charitable work and Mohan wants to support the initiative. A day later,
Mohan, writes a cheque for Amit as a donation. Amit is engaged in charitable work and Mohan wants to support the initiative. A day later, there is a news story about Amit misusing the funds collected in the name of the charity. Mohan instructs the bank to stop the payment. Amit presents the cheque but it was dishonored by the bank. Amit serves a notice to Mohan demanding the money to be paid. Mohan makes no communication. Amit month later, Amit files a criminal proceeding against Mohan under Section 138 of the Negotiable Instruments Act, 1881. What are the liabilities of Mohan towards Amit? Can Mohan be penalized? Support your answers with Reasons
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