Mr. M issued a cheque of 3,00,00 dated 31.12.2023 at 10 a.m. to Mr. N as a consideration towards the medical services provided by the later. Mr. N…
CA Intermediate · Corporate and Other Laws · PYQS · May 2024
Mr. M issued a cheque of 3,00,00 dated 31.12.2023 at 10 a.m. to Mr. N as a consideration towards the medical services provided by the later. Mr. N presented the above cheque on 31.03.2024 during the banking business hours. The cheque was dishonoured taking the plea that it was not presented within the requisite time of 3 months as provided under section 138 of the Negotiable Instruments Act 1881. Referring to the provisions of the General Clauses Act, 1897 decide, whether the plea for dishonouring the cheque was valid.
Suggested Answer and Working Notes:
As per the section 9 of the General Clauses Act, 1897, in case any legislation or Regulation, it shall be sufficient, for the purpose of excluding the first in a series of days or any other period of time, to use the word “from”, and, for the purpose of including the last in a series of days or any other period of time, to use the word "to". The first day in series is 31.12.2023 and last day is 31.03.2024. Hence, applying the above provisions, 31.12.2023 is to be excluded and 31.03.2024 is to be included in calculation as per the General Clauses Act, 1897. Since, the cheque has been presented within 3 months i.e. on 31.03.2024, it is eligible for honor and payment. Hence, the plea of dishonouring the cheque is not valid.
Topics: The General Clauses Act, 1897
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