Section 138 cheque bounce: the time limits explained step by step
From the date on the cheque to the last day to file a complaint: a plain-language walk through the Section 138 Negotiable Instruments Act timeline.
A cheque bounces. The drawer ignores your calls. You want to file a case under Section 138 of the Negotiable Instruments Act, 1881. The law gives you a fixed series of deadlines, and missing one can sink an otherwise good complaint. This post lays out the steps in plain language so you can see how the timeline fits together.
General information, not legal advice. The law, and how courts count the days, can be subtle. Before you act on a deadline, confirm it with an advocate and read the Act. This guide describes the usual position.
What Section 138 covers
If a cheque given to discharge a legally enforceable debt or liability is returned unpaid by the bank, because the account has insufficient funds or because the amount exceeds what the drawer arranged with the bank, the drawer can be punished. The penalty can be imprisonment of up to two years, or a fine of up to twice the cheque amount, or both. But the offence is only complete if every step below is followed on time.
The timeline, step by step
| Step | What must happen | Time limit |
|---|---|---|
| 1. Present the cheque | Present it to your bank | Within the cheque’s validity, which is three months from its date in current banking practice (or earlier, if it states a shorter period) |
| 2. Cheque is returned | The bank returns it unpaid and gives you a return memo | Note the date you were informed |
| 3. Send a demand notice | Written notice to the drawer, demanding payment of the cheque amount | Within 30 days of receiving information from the bank that the cheque was returned |
| 4. Wait for payment | The drawer may pay after receiving the notice | The drawer has 15 days from receiving the notice |
| 5. File the complaint | Complaint before the Magistrate if no payment was made | Within one month of the date the cause of action arises, which is after the 15-day period has run |
Common questions about counting
When does the clock start for the notice?
The 30 days run from when you receive the information from the bank that the cheque was returned unpaid, not from the date on the cheque. Keep the return memo and note the date you received it.
What counts as the notice date?
The 15-day payment period is counted from the date the drawer receives the notice, not the date you send it. This is why proof of service, such as a postal receipt, tracking record or delivery acknowledgment, matters. Notices are commonly sent by registered post and by email as well.
What if I miss the one-month deadline for the complaint?
The law allows the court to take up a late complaint if you can show sufficient cause for the delay. That is a discretion given to the court, not a right, so it is best not to rely on it.
Can the cheque be presented again?
A cheque can be presented more than once while it is still valid. How that affects the notice and complaint deadlines is a technical question that courts have dealt with in detail, so take legal advice before presenting again after a first return.
Work out your own dates
The Section 138 limitation calculator takes the date of the cheque, the date of return and the date of notice, and works out the deadlines for each stage for you. The legal date calculator bundles this with other common deadline calculations. Both do the date arithmetic only. They do not decide whether a deadline has been met in law, and they do not replace the advice of a lawyer.
A practical checklist
- Keep the original cheque, the bank’s return memo and your account statement.
- Send the demand notice in good time, well before the 30th day. State the cheque details, the amount and the demand clearly.
- Keep proof that the notice was sent and when it was delivered.
- Diarise the 15-day and one-month dates the moment the notice is delivered. The case diary can hold reminders.
- Budget for court fees at the filing stage. The court fee calculator gives an estimate for the state you are in.
For the drawer
If you are on the other side and receive a notice, the 15-day period is your chance to make the payment and avoid the offence. Do not ignore a notice, and get advice promptly.