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The minimum notice period for dishonour by non-payment (Section 138) before initiating prosecution is:
A7 days from receipt of demand notice
B30 days from receipt of demand notice
C15 days from receipt of demand notice
D60 days from receipt of demand notice
Answer & Solution
Correct answer: C. 15 days from receipt of demand notice
1. Section 138(c) — drawer has 15 days from receipt of notice of demand to make payment of the cheque amount.
2. Failure within 15 days triggers Section 138 prosecution.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Negotiable Instruments Act 1881_