Under the proviso to section 138 of the Negotiable Instruments Act, 1881, how long does the drawer have…
The drawer has fifteen days from receipt of the demand notice to pay under proviso (c) to section 138. If payment is not made within that period and the other statutory…
Choose your answer
Under the proviso to section 138 of the Negotiable Instruments Act, 1881, how long does the drawer have to pay after receiving the written demand notice?
Answer and explanation
Correct answer C
The drawer has fifteen days from receipt of the demand notice to pay under proviso (c) to section 138.
If payment is not made within that period and the other statutory conditions are met, the cause of action arises on expiry of the payment period.
Option feedback
Option A
The thirty-day period under proviso (b) concerns the payee or holder in due course giving notice after receiving information of dishonour from the bank.
Option B
Proviso (c) does not allow forty-five days for the drawer to pay after receiving notice.
Option C
Proviso (c) gives the drawer fifteen days from receipt of the notice to pay.
Option D
Proviso (c) does not allow ninety days for payment after notice.
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