What Is The Time Limit To Issue A Demand Notice? (30 Days)

Answer:

The time limit to issue a demand notice in a cheque bounce case is 30 days.

• When a cheque is dishonoured, the bank gives the payee a Cheque Return Memo stating the reason for dishonour.

• From the date of receiving this return memo, the payee must send a legal demand notice to the drawer within 30 days.

• The notice must demand payment of the cheque amount within 15 days of the drawer receiving it.

• 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.