Question
Under Section 138 of the Negotiable Instruments Act,
1881, cheque dishonour offence completes when:Solution
Section 138 of the NI Act creates strict criminal liability sequence: (1) Cheque presented within 3/6 months validity, (2) Returned unpaid due to insufficient funds, (3) Payee serves 30-day demand notice, (4) Drawer fails to pay, (5) Complaint within 15 days of notice expiry. Each step mandatory for offence constitution.
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