What is the notice period under section 138 of NI act and also when the cause of action arises to file a case under section 138.

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Accepted Answer

Notice period under section 138 of NI act and cause of action to file a case.

Notice period under section 138 is 15 days from the date on which the payee receives the notice of dishonor.
Cause of action to file a case under section 138 arises when the cheque is dishonored by the bank due to insufficient funds or other reasons.
The payee must send a legal notice to the drawer within 30 days of dishonor of the cheque to give them an opportunity to make the payment.
If the drawer fails to make the payment within 15 days of receiving the legal notice, the payee can file a case under section 138 of the Negotiable Instruments Act.

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