17 February, 2012

Legal Knowledge::::Time When Dishonour of Cheque is treated as offence


Simple Dishonour of Cheque is not an offence under Section 138 but other formalities of issue of notice of demand and to wait for 15 days of its service is necessary. 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. Non –Payment of cheque amount within 15 days from the date of receipt of notice of demand is the basis of accrual of cause of action. Drawer in order to avoid his prosecution is bound to pay the  amount of dishonoured cheque within 15 days of receipt of notice from the payee. If he had tendered the entire amount after receipt of notice but within period of 15 days and complain had refused to accept the same, then in those circumstances, drawer cannot be held liable for offence.

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