Chapter XVII - Of Penalties in Case of Dishonour of Certain Cheques for Insufficiency of Funds in the Accounts
Section 140
Section 140: Defence which may not be allowed in any prosecution under section 138
Section 140 excludes the drawer’s lack of expectation of dishonour as the stated defence to a section 138 prosecution.
On this page
Need advice on Section 140?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
It shall not be a defence in a prosecution for an offence under section 138 that the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment for the reasons stated in that section.
Applicability and limits
A drawer cannot answer the prosecution merely by saying that, when issuing the cheque, there was no reason to expect dishonour for a reason stated in section 138. The provision addresses that particular argument.
This does not remove the need to establish section 138’s ingredients or erase every other defence. Debt or liability, the cheque, statutory notice and other disputed facts still require their own analysis.
Hypothetical example
Hypothetical: a business owner says the account was expected to receive funds before the cheque was presented. That expectation alone is not the defence allowed against the section 138 charge; the underlying liability and statutory conditions must still be examined.
Evidence and next steps
Separate the excluded lack-of-expectation argument from disputes about the offence ingredients.
Keep account, transaction, cheque and demand-notice records.
Present any other properly supported defence through the applicable court process.
Statutory and procedural context
This provision forms part of Chapter XVII. For an actual section 138 prosecution, check the other offence requirements, applicable procedural law and court directions.
Practical checklist
Do
- Separate the excluded lack-of-expectation argument from disputes about the offence ingredients.
- Keep account, transaction, cheque and demand-notice records.
- Present any other properly supported defence through the applicable court process.
Avoid
- Do not treat this general guide as a case-specific court direction.
Glossary
- Drawer
- The person drawing the cheque on the maintained account.
- Excluded defence
- The specific lack-of-belief argument described in section 140.
Frequently asked questions
Is a belief that funds would arrive enough by itself?
The section excludes the stated argument that the drawer had no reason to expect the relevant dishonour when issuing the cheque.
Does this mean every prosecution succeeds?
No. The prosecution must still establish the applicable offence requirements, and other legally available defences require separate analysis.
Does the section concern every commercial payment dispute?
Its wording specifically concerns prosecution for an offence under section 138.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026