BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The payee has to sent the notice to the drawer with 30 days from the date of non payment/non acceptance. The notice should mention that the cheque amount has to be paid to the payee within 15 days from the date of receipt of the notice by the drawer.

Detailed explanation-2: -Fact of dishonour be informed to the drawer by notice within 30 days. 5. Drawer of cheque must fail to make payment within 15 days of receipt of the notice. A mere presentation of delivery of chqeue by accused would not amount to acceptance of any debt or liability.

Detailed explanation-3: -Reasonable time of giving notice of dishonour.-If the holder and the party to whom notice of dishonour is given carry on business or live (as the case may be) in different places, such notice is given within a reasonable time if it is despatched by the next post or on the day next after the day of dishonour.

Detailed explanation-4: -According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.