Mahesh draws a cheque of ₹25,000 on his own account, payable to Mukesh but only has ₹20,000 in his account. Mukesh presents the same to the bank after six months from the date on which it is drawn. The cheque bounced due

Section 138 of the Negotiable Instruments Act, 1881 (Act), deals with the dishonour of cheques due to insufficient funds. It states that if a cheque drawn by a person for the discharge of any debt or other liability is returned unpaid by the bank due to insufficient funds, such person shall be deemed to have committed an offence. However, the proviso to Section 138 specifies certain conditions that must be met for the offence to be applicable. One crucial condition is that the cheque must be presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier. In the given situation: Mahesh drew a cheque for ₹25,000, but had only ₹20,000 in his account. Mukesh presented the cheque to the bank after six months from the date it was drawn. The cheque bounced due to insufficient funds. Since Mukesh presented the cheque to the bank after six months from the date on which it was drawn, it falls outside the statutory period for presentation as per the proviso to Section 138. Therefore, the liability of Mahesh under Section 138 does not arise in this case. Conclusion: Mahesh is not liable under Section 138 of the Negotiable Instruments Act, 1881, because the cheque was presented after the expiry of the six-month validity period.