The short answer: a cheque bounce case under Section 138 of the Negotiable Instruments Act, 1881 runs on three fixed clocks. You have 30 days from the bank’s return memo to send a written demand notice. The person who issued the cheque then has 15 days from receiving it to pay. If they do not, you have one month from the end of those 15 days to file the complaint. Miss any of the three and the case can fail on limitation, however genuine the debt is.
Before the clocks start: the cheque itself
Two things must be true before the three clocks matter.
- The cheque was presented in time. A cheque is valid for three months from its date (this has been the rule since 1 April 2012). Presenting it after that makes a Section 138 case unavailable.
- It was returned unpaid for insufficient funds, or because it exceeds the arrangement with the bank. Other return reasons, such as a stop-payment instruction or “account closed”, also frequently come within the section, and we advise on each case on its facts.
Step 1: Read the return memo (day 0)
The bank gives you a return memo stating the date and the reason. Day 0 is the day you receive that information. Write the date down and count from it. Do not count from the date on the cheque.
Step 2: Send the demand notice (within 30 days)
The notice must be in writing and must demand payment of the cheque amount. Send it to the drawer’s correct address by registered post or speed post, and by email as well if you have the drawer’s address. Keep three things: a copy, the postal receipt and the tracking record.
A notice that demands the wrong figure, or is sent to an old address, is the commonest reason a case is challenged later. Any interest or costs you want to claim should be shown separately from the cheque amount. Our guide to the format of a legal notice covers the contents in detail.
Practical rule: do not wait for day 30. Send it in the first week, so that a wrong address can still be fixed inside the period.
Step 3: Wait out the 15 days
The drawer has 15 days from receiving the notice to make the full payment. Two points matter here:
- Receipt starts the clock, not posting. Notice sent by registered post to the correct address is treated as served even when the drawer refuses it or does not collect it (C.C. Alavi Haji v. Palapetty Muhammed, 2007).
- Part payment does not end the matter. The section speaks of payment of the amount of the cheque. If only part is paid, tell us before you decide how to proceed.
If the drawer pays in full within the 15 days, there is no offence to prosecute.
Step 4: File the complaint (within one month)
If the 15 days pass without payment, the complaint must be filed within one month from the day the period ended (Section 142(1)(b)). A court may take a late complaint if the complainant shows sufficient cause for the delay, but that is not something to plan around.
A complaint filed before the 15 days end is premature and can be dismissed (Yogendra Pratap Singh v. Savitri Pandey, 2014). Start drafting during the waiting period, but file only after it has run out.
A worked timeline (illustrative dates):
| Event | Date |
|---|---|
| Return memo received | 1 October |
| Last day to send notice | 31 October |
| Notice actually received by drawer | 12 October |
| Drawer’s 15 days end | 27 October |
| Last day to file complaint | around 27 November |
Counting rules, and what counts as the date of receipt, are where cases are won and lost, so we check every date against the documents before filing.
Where to file
Under Section 142(2) the complaint goes to the court where the payee’s collecting bank branch is situated, not where the drawer lives or where the cheque was signed. This is the position after the 2015 amendment, which reversed the earlier ruling in Dashrath Rupsingh Rathod (2014). If the account you deposited the cheque in is at a Delhi branch, the case is in Delhi. For the court-wise picture in Delhi, see our pages for Tis Hazari, Dwarka and Rohini.
What the drawer should do on receiving a notice
Everything above works in reverse for the person who issued the cheque. If you receive a notice:
- Do not ignore it. The 15 days run whether or not you reply.
- Check whether the amount demanded matches the cheque and whether the notice reached you inside the payee’s 30 days.
- If the debt is genuine, paying in full inside the 15 days ends the criminal exposure. If it is disputed, send a written reply setting out why.
After the complaint
The trial is meant to be summary (Section 143). The court can order interim compensation of up to 20% of the cheque amount (Section 143A), and an appeal against conviction can require the appellant to deposit at least 20% of the fine or compensation (Section 148). Many cases end in a compromise, and the offence can be compounded under Section 147 with the court’s leave. No lawyer can promise how a particular case will end, and we do not.
Documents to keep from day one
- The original cheque and the bank’s return memo
- The demand notice, postal receipt and tracking record
- Any email or message admitting the debt
- The agreement, invoice or loan record behind the cheque
- Bank statement showing the deposit
Speak to us
If a cheque has bounced or you have received a notice, the dates above decide your options, so act early. Call 99115 44811 or write to manujalawyers@gmail.com. Our advocates handle these cases at the Delhi courts. Read more on our cheque bounce practice at Tis Hazari Court.
This post gives general information on the law as it stands and is not advice on your particular case.