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What are the key provisions of Section 138 of the Negotiable Instruments Act?
Section 138 -- Dishonour of Cheque
Section 138 of the Negotiable Instruments Act, 1881 makes the dishonour of a cheque a criminal offence. Key provisions include:
The cheque must be presented within 6 months of issuance or within its validity period
Payee must issue a demand notice within 30 days of receiving the dishonour memo
The drawer has 15 days from receipt of notice to make the payment
Complaint must be filed within 30 days of cause of action arising
Punishment: imprisonment up to 2 years, or fine up to twice the cheque amount, or both
Citations
Dashrath Rupsingh Rathod v. State of Maharashtra (2014) 9 SCC 129
Meters and Instruments v. Kanchan Mehta (2017) 7 SCC 1
Negotiable Instruments Act, 1881, Sections 138-142
Related Sources
Statutes
Negotiable Instruments Act, 1881
Code of Criminal Procedure, 1973
Indian Penal Code, 1860 (S.420)
Landmark Cases
Dashrath Rupsingh Rathod v. State of Maharashtra
2014
Meters and Instruments v. Kanchan Mehta
2017
Kusum Ingots v. Pennar Peterson
2000
MMTC Ltd v. Medchl Chemicals
2002
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