All guides
Know Your Options When a Cheque Bounces
Understand the legal context of cheque dishonour and the records to keep. Verify notice, service, and filing deadlines with an advocate.
Prepare your records and choose the next resource
Useful records to organise for Negotiable Instruments Act. These prompts are not a mandatory filing checklist.
- The cheque, bank return memo and evidence of the underlying debt or liability.
- When bank information and the demand notice were received, with service evidence.
- A dated chronology for counsel; notice, payment and complaint periods have separate triggers.
The 30-15-30 timeline
- Present the cheque within 3 months of the date it bears.
- Send the written demand within 30 days of receiving bank information about dishonour. Preserve when that information was received and proof of notice service.
- The drawer has 15 days from receipt of the demand notice to pay for the Section 138 condition. A dispute about service or payment needs individual checking.
- Section 142 ordinarily allows one month from the cause of action under Section 138 proviso (c), not a fixed 30 days. A delayed complaint may be admitted for sufficient cause; have notice service and the filing date checked.
What you can recover
- Section 138 permits imprisonment up to two years, or fine up to twice the cheque amount, or both. Interest or compensation is not an automatic addition to that statutory punishment.
- Interim compensation up to 20% of cheque amount under Sec. 143A.
- Section 147 makes the offence compoundable. A settlement requires agreement and the applicable court process; no settlement rate or recovery outcome is promised.
Want to ask about your specific situation?
Ask Kanoon-AI