When the holder of the cheque receives information from the bank that the cheque has been dishonoured,…
Section 138 proviso (b) requires the written payment-demand notice within thirty days after the payee or holder in due course receives bank information that the cheque was…
Choose your answer
When the holder of the cheque receives information from the bank that the cheque has been dishonoured, he should make a demand ____ by giving a notice in writing to the drawer of the cheque for payment of the money.
Answer and explanation
Correct answer B
Section 138 proviso (b) requires the written payment-demand notice within thirty days after the payee or holder in due course receives bank information that the cheque was returned unpaid. This is distinct from the drawer's fifteen-day payment period after receiving that notice under proviso (c). The thirty-day notice rule was already applicable in 2016.
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