Cheque Bounce Case Time Limit ? When Should You File a Case?

In India, filing a cheque bounce case under Section 138 of the Negotiable Instruments Act, 1881 requires strict adherence to timelines. The cheque must be presented to the bank within three months from its issue date. If it is dishonoured, the payee must send a legal demand notice within 30 days of receiving the bank's return memo, giving the drawer 15 days to make the payment. If the drawer fails to pay within this period, the payee can file a criminal complaint within one month of the notice period's expiry. Missing these deadlines can make the complaint time-barred, and the court may reject it. Strict compliance ensures the payee's legal rights are protected and the case is valid.
The law prescribes strict timelines for initiating such a complaint:

1. Notice Period: The payee must send a demand notice to the drawer within 30 days of receiving the bank?s memo indicating that the cheque has bounced.

2. Payment Window: Upon receiving the notice, the drawer has 15 days to make the payment.

3. Filing Deadline: If the drawer fails to pay within those 15 days, the payee can file a complaint within one month from the date the cause of action arises (i.e., the day after the 15-day period ends).

In total, the complaint must be filed within approximately 75 days from the date of cheque dishonor. Filing after two years is not legally permissible, and such cases are typically dismissed as time-barred.

• Send a cheque bounce legal notice within 30 days of receiving dishonor information from the bank.
• The cheque issuer has 15 days from receiving the notice to make the payment.
• If unpaid, file a cheque bounce case within 30 days after the 15-day notice period ends.

Dear Sir,

Please refer to the Cheque Bounce FAQs below:

1. In which court should I file a complaint under Section 138 N.I. Act if the cheque issuer fails to pay after receiving the legal notice?

• A cheque bounce case under Section 138 N.I. Act can be filed in any competent court within the jurisdiction where:
  • The cheque was drawn.
  • The bank where the cheque was presented (holder's bank) is located.
  • The drawer's bank where the cheque is payable is located.
  • The drawer received the legal notice.
• The complainant can choose any of these locations to file the case.

2. What if more than 30 days have passed since I was informed of the cheque bounce?

• If the cheque is still valid (within 3 months from the issue date), you can represent the cheque to the bank as there is no restriction on the number of times a cheque can be presented.
• However, once a legal notice is sent, the case must be filed within 30 days from the expiry of the notice period (15 days). Re-presenting the cheque does not reset the filing deadline.

3. How long after serving the notice can I file a cheque bounce case?

• You must file the complaint under Section 138 N.I. Act within 30 days after the 15-day notice period ends.
• This means you have 45 days from the notice date to initiate legal action. If you fail to do so, you can file a summary suit for money recovery or initiate criminal proceedings under Section 420 IPC within 3 years.

4. What if I don’t have the cheque issuer’s address?

• The notice must be sent to the last known address of the drawer.
• If the notice is returned as undelivered with remarks like "addressee not available" or "left without forwarding address," the 15-day notice period starts from the date of return.
• The complaint must still be filed within 30 days after the notice period expires.

• Send a legal notice within 30 days of dishonor.
• The accused has 15 days to make the payment.
• If unpaid, you must file a cheque bounce case under Section 138 N.I. Act within 30 days after the notice period ends.
  • Cheque validity period: 3 months from the date of issuance.
  • Total time limit to file a case: 45 days from the legal notice date.

• Legal Notice: Must be sent within 30 days of receiving the bank’s dishonor memo.
• Grace Period for Payment: 15 days from the date of notice receipt.
• Filing Deadline: If unpaid, you must file a cheque bounce case within the next 30 days.
• Total Time Limit: 45 days from the notice date.

Delay in filing? The court may allow an extension under Section 142 N.I. Act if a valid reason is provided.