Before initiating criminal proceeding for dishonour of cheque, within how many days of receipt of information about dishonour should the payee of cheque issue a notice?
Verified Answer
A. 15 days
B. 30 days
C. 90 days
D. No notice is required
Explanation:
Section 138, proviso (b) of the Negotiable Instruments Act, 1881, states that the payee or holder in due course of the cheque must make a demand for the payment of the said amount of money by giving a notice in writing to the drawer of the cheque, within thirty days of the receipt of information from the bank regarding the return of the cheque as unpaid.