Which of the following condition needs to be satisfied for making a person liable for the Dishonor of a Cheque for Insufficiency of Funds or Exceeds Arrangement under Section 138 of the Negotiable Instruments Act?I. The cheque has been presented within the validity period.II. A demand for payment is made by notice within 30 days of the return of cheque.III. The drawer fails to make payment within 15 days of receipt of the notice.a)Only I and IIb)Only I and IIIc)Only II and IIId)All of the aboveCorrect answer is option 'D'. Can you explain this answer?

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Which of the following condition needs to be satisfied for making a person liable for the Dishonor of a Cheque for Insufficiency of Funds or Exceeds Arrangement under Section 138 of the Negotiable Instruments Act?
I. The cheque has been presented within the validity period.
II. A demand for payment is made by notice within 30 days of the return of cheque.
III. The drawer fails to make payment within 15 days of receipt of the notice.

a)
Only I and II
b)
Only I and III
c)
Only II and III
d)
All of the above

Correct answer is option 'D'. Can you explain this answer?

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Which of the following condition needs to be satisfied for making a pe...

Dishonor of a Cheque for Insufficiency of Funds or Exceeds Arrangement under Section 138 of the Negotiable Instruments Act: If a cheque issued by a person to another person for the discharge, in whole or any part of any debt or other liability is returned by the bank unpaid, on account of insufficient funds in the account or exceeds the agreement made with that bank; such person is deemed to have committed an offence, and liable to be punished with imprisonment up to two years or with fine up to twice the amount of the cheque or with both, if following conditions are satisfied:

The cheque has been presented within the validity period i.e., three months of the date of cheque)
A demand for payment is made by notice within 30 days of the return of cheque, and
The drawer fails to make payment within 15 days of receipt of the notice.

Thus, Option (d) is the correct answer.

Answered by Notes Wala · View profile

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Which of the following condition needs to be satisfied for making a person liable for the Dishonor of a Cheque for Insufficiency of Funds or Exceeds Arrangement under Section 138 of the Negotiable Instruments Act?I. The cheque has been presented within the validity period.II. A demand for payment is made by notice within 30 days of the return of cheque.III. The drawer fails to make payment within 15 days of receipt of the notice.a)Only I and IIb)Only I and IIIc)Only II and IIId)All of the aboveCorrect answer is option 'D'. Can you explain this answer?

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