Time limits in a cheque bounce matter

Cheque demand notice — 15-day payment window

Under clause (c) of the proviso to Section 138 of the Negotiable Instruments Act 1881, the drawer has 15 days from service of the demand notice to make the payment.

Cheque case — Section 142(b) one-month window

Section 142(b) of the Negotiable Instruments Act 1881 allows one month for a complaint, counted from the day the 15-day notice period under Section 138 expires. A court may condone delay under the proviso to Section 142(b) only on sufficient cause shown.

Whether a period has begun, and when it ends

Each period above runs from an event, and the date of that event is a fact about one matter rather than something this guide can state. Whether a period has begun, whether it has ended, and whether anything stops or extends it are questions an advocate answers on the papers in a particular case.

The documents these periods attach to

• Demand notice under Section 138 of the Negotiable Instruments Act, 1881 — The demand under clause (b) is made within thirty days of the receipt of information from the bank that the cheque was returned unpaid
• Demand notice under Section 138 of the Negotiable Instruments Act, 1881 — After the notice reaches the drawer, clause (c) allows a fixed period for payment of the cheque amount.
• Demand notice under Section 138 of the Negotiable Instruments Act, 1881 — A court takes cognizance of an offence under Section 138 only on a complaint in writing by the payee or the holder in due course, made within the period Section 142 allows from the day that cause of action arises.

Related guides

• Demand notice under Section 138 of the Negotiable Instruments Act, 1881