Cheque Bounce Cases under Section 138: Timelines That Matter

Section 138 of the Negotiable Instruments Act, 1881 makes the dishonour of a cheque for insufficiency of funds a criminal offence — but only if strict timelines are followed. Missing a deadline can defeat an otherwise strong case.

The four key timelines

1. Presentation: the cheque must be presented within its validity period, generally three months from the date on the cheque.
2. Legal notice: after dishonour, a written demand notice must be sent to the drawer within 30 days of receiving information of the dishonour from the bank.
3. Payment window: the drawer has 15 days from receipt of the notice to make payment.
4. Complaint: if payment is not made, the complaint must be filed within one month from the date the 15-day period expires.

Documents to preserve

• The original dishonoured cheque and the bank's return memo
• A copy of the legal notice and proof of dispatch and delivery
• Documents showing the debt or liability for which the cheque was issued

Where is the complaint filed?

Jurisdiction generally lies with the court within whose local limits the branch of the bank where the payee maintains the account is situated.

This article is for general information only and is not legal advice.