Cheque bounce under Section 138: the notice and complaint timeline

Demand notice

Within 30 days of the bank's return memo

Time to pay

15 days from receipt of notice

Complaint

Within one month after the 15 days expire

Punishment

Up to 2 years, or fine up to twice the cheque amount, or both

What are the steps and deadlines?

1. Present the cheque within its validity, which is three months from the date on the cheque.
2. Receive the return memo from the bank stating the reason for dishonour, such as insufficient funds.
3. Send a written demand notice to the drawer within 30 days of receiving that information.
4. Wait 15 days from the drawer's receipt of the notice. If the amount is paid, no offence is made out.
5. File the complaint before the Magistrate within one month from the day the 15 days expire.

Section 142 allows the court to condone delay in filing the complaint if the complainant shows sufficient cause. There is no such relief for a late demand notice.

Where should the complaint be filed?

Under Section 142(2), inserted in 2015, a cheque deposited into an account is tried by the court within whose local limits the payee's bank branch is located. A cheque presented across the counter is tried where the drawer's bank branch is located.

What does the complainant need to prove?

That the cheque was issued for a legally enforceable debt or liability, that it was dishonoured, and that the notice and timelines were complied with. Section 139 presumes that the holder received the cheque in discharge of a debt, and the drawer must rebut that presumption with evidence.

What relief can the court grant?

• Imprisonment up to two years, or a fine up to twice the cheque amount, or both.
• Interim compensation up to 20 per cent of the cheque amount under Section 143A once the accused pleads not guilty.
• On appeal against conviction, the appellate court may order a deposit of at least 20 per cent of the fine or compensation under Section 148.

The offence is compoundable under Section 147, so the parties can settle at any stage with the court's permission.

This guide states the general legal position in India as on 14 November 2026. It is not legal advice. Time limits and outcomes depend on the facts and on later amendments and judgments. See the disclaimer, and read more on the firm's Banking, Recovery and Insolvency practice.