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Executive summary
A complaint under section 138 of the Negotiable Instruments Act, 1881 succeeds or fails on dates long before anyone argues the merits. The cheque must be presented within its validity, the demand notice must go out within 30 days of the payee learning of the dishonour, the drawer gets 15 days from receiving the notice to pay, and the complaint must be filed within one month of the cause of action that arises when those 15 days run out (section 142(1)(b)).
Each of those dates depends on the one before it, so one wrong assumption, such as counting from the date on the return memo rather than the date the payee received it, carries through to the end. This guide walks through each step with a worked example, the statutory sources, the proviso for condoning a late complaint and the territorial jurisdiction rule in section 142(2).
Use the free Section 138 timeline calculator to run your own dates, then keep the proof of each date (bank memo, postal or courier receipt, tracking report) in the case file. In Legal Staff the computed dates sit on the matter as limitation entries that an advocate approves before they reach the diary.
The section 138 timeline, step by step
Check the cheque was presented within its validity
Clause (a) of the proviso to section 138 requires presentation within six months of the date on the cheque or within its period of validity, whichever is earlier. Since the Reserve Bank of India cut cheque validity to three months from 1 April 2012, three months from the date on the cheque is the working limit. A post-dated cheque is counted from the date written on it, not the date it was handed over.
Record when the payee received the bank’s information
The 30-day notice period under clause (b) runs from the payee’s receipt of information from the bank that the cheque was returned unpaid. That is usually the date the return memo reached the payee or the account statement showing the return, not the date printed on the memo. Note how and when the information came in, and keep the document.
Send the written demand notice within 30 days
The notice must demand payment of the cheque amount. Send it to every address you have for the drawer (and, for a company, to the company and the persons you intend to make accused under section 141) by a mode that gives you proof of dispatch and delivery. Demanding sums other than the cheque amount without separating them clearly invites an argument that the demand was defective.
Work out the date the notice was received
Clause (c) gives the drawer 15 days from receipt of the notice to pay. Keep the tracking report or the acknowledgement. Where the notice is returned refused or unclaimed after being sent to the correct address, courts have generally been willing to treat it as served, but the date you treat as receipt should be the one you can prove.
Identify the day the cause of action arises
If the drawer does not pay within the 15 days, the offence is complete and the cause of action arises on the day after the 15-day period ends. Do not file before that day: a complaint filed before the cause of action arises is premature.
File the complaint within one month
Section 142(1)(b) requires the complaint to be made within one month of the date on which the cause of action arises under clause (c). Aim to file well before the last day, with the original cheque, return memo, notice, proof of dispatch and delivery, and the complainant’s affidavit evidence ready.
File in the court that has jurisdiction
Section 142(2), inserted in 2015, places jurisdiction with the court where the payee’s bank branch is situated when the cheque was delivered for collection through the payee’s account, or the court where the drawer’s branch is situated when it was presented otherwise than through an account. The complaint is tried by a Metropolitan Magistrate or Judicial Magistrate of the first class.
If you are late, apply for condonation with the complaint
The proviso to section 142(1)(b) lets the court take cognizance of a complaint filed after the one-month period if the complainant satisfies it that there was sufficient cause. Explain the delay day by day in a supporting application and affidavit; do not rely on the court overlooking it.
Statutory deadlines under sections 138 and 142
| Stage | Time limit | Counted from | Source |
|---|---|---|---|
| Presentation of cheque | Within 6 months or the cheque’s validity, whichever is earlier (3 months in practice) | Date on the cheque | s.138 proviso (a); RBI validity rule from 1 April 2012 |
| Demand notice | Within 30 days | Payee’s receipt of information of dishonour from the bank | s.138 proviso (b) |
| Payment by drawer | Within 15 days | Drawer’s receipt of the demand notice | s.138 proviso (c) |
| Complaint | Within one month | Date the cause of action arises (after the 15 days expire) | s.142(1)(b) |
| Late complaint | Court may take cognizance if sufficient cause is shown | Expiry of the one-month period | Proviso to s.142(1)(b) |
| Territorial jurisdiction | Court where the payee’s collecting branch is (or the drawer’s branch if not presented through an account) | Place of presentation | s.142(2) |
| Interim compensation | Court may order up to 20% of the cheque amount | During the trial | s.143A |
A worked example
A cheque dated 2 February 2026 is presented on 25 February and returned for insufficient funds. The return memo reaches the payee on 4 March 2026. Excluding the day of receipt, the 30-day window for the demand notice ends on 3 April 2026. The notice is sent on 10 March and delivered on 12 March.
Excluding 12 March, the drawer’s 15 days end on 27 March 2026. Nothing is paid, so the cause of action arises on 28 March. The one-month complaint period runs from there: the conservative last day to file is 27 April 2026. Some practitioners would argue for 28 April, but a careful chamber files in the first fortnight and never plans around the final day.
If the court is closed on the last day, section 4 of the Limitation Act allows filing on the day it reopens, but check how your court treats that for complaints under a special statute before relying on it. The Section 138 timeline calculator shows each of these dates with the rule applied, so a junior can check the arithmetic and a senior can approve it.
Tracking many cheque bounce matters at once
Chambers that act for lenders, distributors or finance companies may have dozens of notices in flight at once. The risk is not the law; it is losing track of which notice was delivered when. Give every matter the same fields: cheque date, presentation date, memo received, notice sent, notice delivered, cause of action, last date to file.
In Legal Staff each of those dates can be recorded on the matter, the limitation tracker shows the calculation and every exclusion, and nothing goes into the court diary until an advocate approves it. WhatsApp and email reminders then go to the advocate and the team before the filing date. The drafting studio has a section 138 notice template, but the notice still needs to be checked against the facts of each cheque.
- Keep the original cheque and return memo in the physical file and a scan in the case vault.
- Save the courier or postal tracking page as a PDF on the day of delivery; tracking pages expire.
- Note every address the notice was sent to and the result for each.
Common pitfalls
The notice period runs from the payee’s receipt of information. If the memo reached the client a week after its date, record the date it actually reached them, and keep proof.
A complaint filed before the 15-day payment window has ended is premature. Wait for the day after the window closes.
Demand the cheque amount clearly. If interest, costs or other dues are also claimed, separate them so the demand for the cheque amount stands on its own.
Online tracking pages are not permanent. Download them when the notice is delivered and file them with the postal receipt.
Since the 2015 amendment, jurisdiction follows section 142(2). Check which branch the cheque was presented through before drafting the complaint.
Frequently asked questions
Is a cheque valid for three months or six months for section 138?
Section 138 says six months or the cheque’s validity period, whichever is earlier. Because RBI reduced cheque validity to three months from 1 April 2012, three months from the date on the cheque is the limit that applies in practice.
From when does the 30-day notice period start?
From the date the payee receives information from the bank that the cheque was returned unpaid. That is usually when the return memo reaches the payee, which may be later than the date printed on it.
What if the complaint is filed after one month?
The proviso to section 142(1)(b) allows the court to take cognizance of a late complaint if the complainant shows sufficient cause for the delay. File a condonation application with an affidavit explaining the whole period of delay.
Which court should the complaint be filed in?
Under section 142(2), the court within whose jurisdiction the payee’s bank branch is situated, if the cheque was delivered for collection through the payee’s account; otherwise the court where the drawer’s branch is situated. Check the bare Act for the exact wording before drafting.
General information for advocates, not legal advice. Statutes, rules and court practice directions change; check the bare Act, the latest amendments and your court's rules before relying on any date or section.