ObjectiveMcq
Print Protected
This page is protected for print. Use the website to view the content.
Which of the following is a correct statement of law as per Sections 138 and 142 of the Negotiable Instruments Act, 1881?
Correct Answer: D — All of the above.
The correct answer is All of the above.
Section 138 of the Negotiable Instruments Act, 1881 deals with dishonour of cheque for insufficiency, etc., of funds in the account.
The three conditions under the proviso to Section 138 are: the cheque must be presented to the bank within six months from the date of drawing or within its validity period, whichever is earlier; the payee must give written notice to the drawer within thirty days of receiving information about the dishonour; and the drawer must fail to make payment within fifteen days of receipt of such notice.