Question
Q: What is the time limit to issue a demand notice? (30 days)
Answer
A:
The time limit to issue a demand notice in a cheque bounce case is 30 days.
Explanation
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When a cheque is dishonoured, the bank gives the payee a Cheque Return Memo stating the reason for dishonour.
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From the date of receiving this return memo, the payee must send a legal demand notice to the drawer within 30 days.
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The notice must demand payment of the cheque amount within 15 days of the drawer receiving it.
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If the payee fails to issue the notice within 30 days, he loses the right to file a case under Section 138 NI Act (though a civil suit for recovery may still be possible).
A demand notice must be issued within 30 days from the date the bank informs the payee of the cheque dishonour.
.By Advocate BK Singh
(Delhi High Court)
