How to compute 30 days time limit for issuing demand notice in cheque bounce?

[Anonymous]

A cheque is presented to the bank on 15.01.2017. It is dishonoured on 16.01.2017. Letter of the bank dated 16.01.2017 regarding dishonour of cheque is received by the payee on 18.01.2017. The payee sent the demand notice to the drawer of the cheque on 15.02.2017 by registered A.D. as required under Section 138 of the Negotiable Instruments Act. Please advise me whether this is within the time limitation period of 30 days as required under Section 138 of the Act. How to compute this period?

[Dr. Ashok Dhamija]

As per Section 138 of the Negotiable Instruments Act, the demand for the payment of the cheque amount has to be made “…within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid…”.

In the facts stated by you, you have received the information from the bank about dishonour of the cheque on 18.01.2017. Therefore, the period will be counted from 19.01.2017 (since the date of actual receipt will be excluded from this calculation). So, the period of 30 days gets completed on 17.02.2017. Since you have sent the notice for demand of payment on 15.02.2017, it is within the period of 30 days.

Therefore, your demand notice is within the period of 30 as prescribed under the law.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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