The payee or holder in due course should give notice to drawer within 30 days of return of cheque with the reason “Insufficient balance” and demanding payment within 15 days of his receiving information of dishonour. Drawee can make payment within 15 days of the receipt of notice and only if he fails to do so prosecution could take place.The complaint is to be made with in one month of the cause of action arising that is expiry of the notice period.
Punishments:
Punishments:
- Summary proceedings: fine up to Rs. 5000/- and imprisonment up to one year or both.
- Regular proceedings: fine up to the double the amount of cheque or imprisonment up to 2 years or both
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