Multiple choice

Which of the following is not correct in the context of dishonor of cheque for insufficiency of funds?

  1. To file the suit, the holder is required to give a notice to drawer within 30 days of receipt of information about dishonor.

  2. To file the suit, the holder is to give notice to drawer to make payment within 30 days of receipt of notice by the drawer.

  3. Court can impose fine up to double the amount of cheque on the drawer.

  4. The drawer can be imprisoned up to 2 years, if found guilty.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

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. Thus, option 2 is the correct answer. 

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