The Section 138 timeline
- Present the cheque within 3 months of its date (or its validity)
- On dishonour, collect the bank's return memo
- Send a legal demand notice within 30 days of receiving the return memo
- The drawer has 15 days from receipt of notice to pay
- If unpaid, file the complaint within 30 days after the 15 days end
What the law provides
Dishonour of a cheque issued for a legally enforceable debt is punishable with imprisonment up to two years, a fine up to twice the cheque amount, or both. Courts can order interim compensation up to 20% of the cheque amount (Section 143A), and an appellate court can require a deposit of at least 20% of the fine or compensation (Section 148). The offence is compoundable, so settlement is possible at any stage.
Where to file
A Section 138 complaint is generally filed where the payee's bank branch (where the cheque was presented for collection) is located. In Delhi, these cases are heard by designated courts in each district.
Frequently asked questions
Can I file a case if I missed the 30-day notice deadline?
The notice timeline is strict. A delayed complaint can sometimes be condoned for sufficient cause, but a missed notice deadline usually cannot be cured. Other civil remedies may still be available.
I received a cheque bounce notice. What should I do?
Do not ignore it. Take advice within the 15-day window; paying, replying or negotiating a settlement can each be the right step depending on the facts.
Can a cheque bounce case be settled?
Yes. Section 138 offences are compoundable and can be settled through payment or mediation at any stage.
Related practice areas
This page gives general information about Indian law and is not legal advice. Laws and procedures change; please consult an advocate about your specific facts.