Non C T S Cheque

The reason mentioned by the drawee bank  for returning the cheque holds good and those CTS cheques can be presented by the banker across the counter by the collecting banker.  A cheque is always a cheque legally, and the modes of payments are laid down rules for presentation may be different.  If the cheque is returned with the reason "Refer to drawer" or "Inadequate funds" are the reasons to reckoned for the failure of drawer in failing in his commitment.

No.

Section 138 can be invoked only when the cheque return memo states that there are insufficient funds in the accountholder's account.

Non-CTS compliant cheques shall not be processed for clearing with effect from January 1, 2019, so not comes under N.I. section 138