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      Question

      After receiving information from the bank about the

      dishonour of a cheque, within what period must the payee give a demand notice to the drawer under Section 138?
      A Within fifteen days of receipt of information Correct Answer Incorrect Answer
      B Within thirty days of receipt of information Correct Answer Incorrect Answer
      C Within one month of receipt of information Correct Answer Incorrect Answer
      D Within forty-five days of receipt of information Correct Answer Incorrect Answer
      E Within sixty days of receipt of information Correct Answer Incorrect Answer

      Solution

      Proviso (b) to Section 138 requires the payee or the holder in due course to make a demand for payment by giving a written notice to the drawer within thirty days of the receipt of information from the bank regarding the return of the cheque as unpaid. This thirty-day period (substituted by the 2002 amendment for the earlier fifteen days) is crucial; failure to issue notice in time defeats the complaint.

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