Priyansh purchased some goods from Sumit. He issued a cheque to Sumit for the sale price on 14th June, 2023. Sumit presented the cheque in his bank…

(a) By virtue of provisions of Section 138 of the Negotiable Instruments Act,1881, where cheque was issued by a person to discharge a legally enforceable debt was dishonoured by bank due to insufficiency of funds, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to two years or with fine which may extend to twice the amount of the cheque, or with both. However, (a) the cheque has been presented to the bank within three months or validity period of the cheque, whichever is earlier; (b) the holder makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque within30 days of the receipt of information from the bank regarding the return of the cheque as unpaid; and (c) the drawer of such cheque fails to make the payment of the said amount of money within fifteen days of the receipt of the said notice. In the instant case, Priyansh issued a cheque to Sumit for payment of the price of goods purchased from him. When Sumit presented the cheque in bank, it was returned unpaid due to insufficiency of funds in the account of Priyansh. Sumit sued against Priyansh under section 138 of the Negotiable Instruments Act,1881. For filing the suit under section 138, Sumit should have to make a demand of payment by giving a notice in writing to Priyansh upto18th July, 2023. In case, Priyansh failed in making the payment within fifteen days of the receipt of the said notice, Sumit could sue under section 138.