Section 138 of the Negotiable Instruments Act, 1881 makes the dishonour of a cheque an offence if certain conditions are met. The timeline matters as much as the debt itself.
The sequence
| Step | Time limit |
|---|---|
| Present the cheque to the bank | Within its validity, usually 3 months from its date |
| Send a written demand notice | Within 30 days of learning of the dishonour |
| Drawer may pay | Within 15 days of receiving the notice |
| File the complaint | Within 1 month after the 15 days end |
Two common mistakes
Filing too early. A complaint filed before the 15-day period ends is not maintainable. Filing too late. Delay may be condoned under the proviso to Section 142(1)(b), but only if sufficient cause is shown.
For the person who issued the cheque
Do not ignore the notice. Section 139 presumes that the cheque was issued for a legally enforceable debt. That presumption can be rebutted, but it takes evidence. The court may also order interim compensation of up to 20% under Section 143A, and an appellate court may order a similar deposit under Section 148.
Where the complaint is filed
Section 142(2) generally places jurisdiction with the court where the payee's bank branch is located, when the cheque was delivered for collection through an account.
General information as of 5 November 2026. It is not legal advice, and you should confirm the current law for your situation.