NEGOTIABLE INSTRUMENT ACT 1938 FUNDAMENTALS:
UNDER SECTION 138 OF NEGOTIABLE INSTRUMENT ACT.
1. Suppose date is 1st Jan. 2004 when the cheque is drawn
favour of the company.
2. The cheque must be submitted before 30th June 2004 within
six months of the date of drawing of the cheque.
3. Suppose the bank intimates on 1st July, 2004 that the
cheque is bounced and the date of receipt of such bank
intimation is 1st July, 2004 .
4. The company has to be very vigilant and give the notice for
payment of the money within 15 days of the receipt of the
intimation from the bank. Thus the company has to give
notice latest by 15th July, 2004.
5. The notice must be sent by Registered A/D. The A/D card
shall contain the date on which the notice has been
received by the person whose cheque has bounced.
6. The company shall give 15 days time to the drawer of the
cheque from the date of receipt of such intimation.
7. Suppose the receipt of notice is 30th July 2004 then the
drawer must be give money latest by 15th August 2004.
8. If the person does not give money by 15 August 2004 then a
complaint before the concerned magistrate must be filed
within one month of the expiry of 15 days time given to the
drawer of the cheque for payment of money.