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PAYMENT AND COLLECTION OF CHEQUES AND OTHER NEGOTIABLE INSTRUMENTS
What is the statutory definition of a cheque under the Negotiable Instruments Act, 1881?
A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand, as defined under Section 6 of the NI Act, 1881.
What is the minimum notice period a payee must give the drawer after cheque dishonour before filing a Section 138 complaint?
15 days written notice to drawer after dishonour
What is the maximum validity period of a cheque from the date of its issue?
A cheque is valid for three months from the date of issue; beyond this period it becomes stale and banks are not obligated to honour it.
What is the time limit for a payee to file a complaint under Section 138 of the NI Act after the notice period expires?
Complaint must be filed within 30 days of notice expiry
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