Legal Question in Banking Law in Bangladesh

Negotiable Instrument ACT 1881

We have business and during my absence one of my partener issued cheque and it was dishonoured.

Leagl Notice given on 24-07-2007 and Notice recvd on 05-08-2007.

In the legal notice they said we need to pay within 30 days.

Case filed on 01-10-2007 and which is 56 days after receipt of legal notice.

As per N I Act one have to file the case within 30days( after 15 days for payment) from date of receipt of notice.

My freinds are saying this is a clear case of quashment as they have not filed the case within stipulated time.

01. Is above statement correct.

02.What would be the date of cause of action.

03.Is it 15 days for payment and 30 days after that are the time that one have to file the case.


Asked on 2/23/08, 8:38 am

1 Answer from Attorneys
Anita Islam The Legal Circle

Re: Negotiable Instrument ACT 1881

According to the latest S.138 amendment to the Negotiable Instrument Act, 1881 : (a) the cheque has to be presented to a bank within 6 months on the date it was drawn, (b) once the cheque bounces, legal notice has to be given to the person who gave the cheque within 30 days of the cheque bouncing, (c) the drawer of the cheque has 30 days from the date of receipt of legal notice to make payment.

In answer to your questions therefore:

01. Case has to be filed within 60 days of the date the legal notice was received by the cheque issuer.

02. The cause of action for filing a suit last arises on the date legal notice expires i.e. when the 30 days for payment given to the cheque issuer through legal notice ends.

03. It is 30 days for payment and 30 days limit to file the case, calculated from the date the legal notice is received.

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Answered on 2/24/08, 6:00 am


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