The new Companies Act (hereinafter referred as CA2013) is replacing old Companies Act, 1956 (hereinafter referred as CA1956)

The CA2013 is partiall! made effecti"e w e f 12 th #eptem$er, 2013, $! wa! of implementing 9% #ections and repealing the rele"ant sections corresponded with CA1956 #ome of the #alient feat&res of the CA2013 are as &nder'

The words any debt or any other liability appearing in section 138 make it very clear that it is not in respect of any particular debt or liability The presumption which the Court will have to make in all such cases is that there was some debt or liability once a cheque is issued. It will be for the accused to prove the contrary. i.e. there is no debt or any other liability. . The Court shall statutorily make a presumption that the cheques were issued for the liability indicated by the prosecution unless contrary is to be proved Therefore any cheque given say by way of gift would not come within the purview of the section. It should be a legally enforceable debt! therefore time barred debt and money"lending activities are beyond its scope. This of course unless the prosecution restricts itself to a particular liability The drawer in payment of a legal liability to discharge the e#isting debt should have drawn cheque.