Mr. Rajesh issued a cheque of 50,000 to his supplier, Mr. Sharma, for goods purchased. The cheque was returned with the remark "Insufficient Funds." Select the correct option regarding the complaint filing period.
Explanation & Strategy
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The cheque bounce complaint timeline under NI Act follows a specific sequence: (1) cheque bounces → (2) payee issues notice within 30 days of receiving dishonour information → (3) drawer gets 15 days to pay after notice receipt → (4) if drawer fails to pay, payee must file complaint within 1 month of the expiry of the 15-day notice period. The one-month filing window under Section 142(b) is strict — missing this deadline bars prosecution entirely. This is a frequently tested provision in AIBE.
The text reads: Section 142(b) NI Act: No court shall take cognizance unless the complaint is made within one month of the date on which the cause of action arises under Section 138.