section 138 ni act
jureddi peddinaidu
(Querist) 16 February 2010
This query is : Resolved
what is time for issue of notice after cheque is dishonoured under section 138 of ni act
Guest
(Expert) 16 February 2010
issue notice within 30 days from the receipt of the information of dishonour of cheque
Raj Kumar Makkad
(Expert) 16 February 2010
within 30 days from the date of knowledge of bouncing of such cheque.
Khaleel Ahmed Mohammed
(Expert) 16 February 2010
I have different opinion. Notice can be issued with in three years of the cheque has been bounced. 15 days notice required as statutory notice to recover the amount as per NI Act.
Sukhija
(Expert) 16 February 2010
within 30 days from date of dishonour, under NI Act.
B K Raghavendra Rao
(Expert) 16 February 2010
Mr. Khaleel Ahmed is totally wrong. Under Section 138 of NI Act, period of limitation for issue of notice is thirty days as all other experts have opined.
Parveen Kr. Aggarwal
(Expert) 17 February 2010
Clause (b) of proviso to Section 138 of the Negotiable Instruments Act, 1881 provides as under:
"(b)The payee or the holder induce course of the cheque, as the case may be, makes 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 by him from the bank regarding the return of the cheques as unpaid".
So there cannot be second opinion about the fact that notice under section 138 of the N. I. Act is to be served within 30 days of the receipt of information by the payee or the holder in due course regarding the dishonour of the cheque.
Khaleel Ahmed Mohammed
(Expert) 17 February 2010
For your kind information.
What does limitation period mean?
The law prescribes different periods within which a person who has a grievance should go to court. For example, if somebody has borrowed your money and not returned it, you should approach the court within three years from the date you lent the money. Note : If you don't go to the court within that time, the courts will not be of help to recover your money. This is called the limitation period. After the limitation period, you cannot enforce your rights in a court. The Limitation Act 1963 prescribes different limitation periods for different kinds of claims. Some other Acts such as the Consumer Protection Act also prescribe limitation periods
Cheque Bounce
This law aims to punish unscrupulous persons who issue cheques they do not really wish to honour. It makes cheque bouncing an offence, which is punishable with imprisonment, with the hope that people would rather pay-up when they issue cheques, rather than serve a jail sentence. Remember a cheque may be returned for any reasons available on the bankers advice, but a criminal complaint that is filed by the receiver of a bounced cheque will survive only if it can be proved that the issuer of the cheque did not have adequate funds in his account. So it is for the receiver of the bounced cheque to prove to the court that the issuer of the bounced cheque did not have the necessary funds in his account to pay against the cheque.
B K Raghavendra Rao
(Expert) 17 February 2010
When the bank issues an endorsement of return of cheque unpaid, it compulsorily mentions the reason for non-payment of cheque. If the bank dishonours the cheque for insufficient fund, the endrosement of the bank is sufficient to prove that the accused did not have sufficient funds in his account and it need not be proved any further. However, if the complainant so requires, he may cause summons to the bank manager as witness.
When once the cheque bounces for insufficient funds, Section 138 of NI Act applies strictly.
