From the bank return memo to the magistrate's court — the dates that decide whether your complaint survives.
The clock starts at the return memo
Section 138 of the Negotiable Instruments Act, 1881 applies where a cheque issued to discharge a legally enforceable debt is returned unpaid for insufficiency of funds or because it exceeds the arrangement with the bank. The dates run from the bank's return memo, not from the date on the cheque.
Keep the original cheque and the original memo. Photocopies create avoidable trouble at the evidence stage.
Thirty days to serve the demand notice
A written demand for the cheque amount must be served on the drawer within thirty days of receiving information of dishonour. Demand the cheque amount — adding interest or other heads in the same demand invites a technical challenge.
Serve by registered post to the correct address and preserve proof. Deemed service protects a complainant whose notice is refused or returned unclaimed.
Fifteen days for the drawer to pay
The offence is complete only if payment is not made within fifteen days of receipt of the notice. No complaint can be filed before that window closes — a premature complaint is liable to be dismissed.
One month to file the complaint
The complaint must be filed before the competent magistrate within one month of the day the fifteen-day period expires. A delayed complaint can still be entertained if the court is satisfied there was sufficient cause, but that is relief to be asked for, never assumed.
Jurisdiction lies with the court where the payee's bank branch that received the cheque for collection is situated.
After filing
Sworn statement, summons, appearance, plea, complainant's evidence, cross-examination, statement of the accused, and judgment. Many matters compound before evidence concludes because the drawer prefers a settlement to a conviction, and the court records the compounding.
On conviction the court may impose imprisonment up to two years, fine up to twice the cheque amount, or both, and interim compensation may be ordered during the trial.
This note is general information on Indian law and not legal advice on your matter. For advice on a specific account, speak with us at +91 73300 22222.