The question (12 marks)
A cheque dated 8 April is deposited by the payee for collection in her own account at her Dadar branch on 10 April and is returned unpaid for insufficiency of funds by the memo dated 13 April; her bank informs her of the return on 15 April. Her advocate's demand notice is posted on 20 April and served on 23 April, and the drawer neither pays nor replies. (a) On what date does the cause of action arise and by when must the complaint be filed? (b) In which court must it be filed and why? (c) What must the complaint contain, and what would change if the drawer were a company? (12 marks)
MU Module II, cheque dishonour; pack ch. 02 section 2.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 2 · Criminal Pleadings, Bail, Appeals and Inherent Powers of Drafting, Pleading and Conveyancing – III.
Authorities you will need
- Sections 138, 139, 140 and 141, Negotiable Instruments Act 1881
- Sections 142, 142A, 143, 143A, 145, 146, 147 and 148, Negotiable Instruments Act 1881
- Section 223, Bharatiya Nagarik Suraksha Sanhita 2023
- Section 395, Bharatiya Nagarik Suraksha Sanhita 2023
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.