Cheque Bounce Under Section 138: Notice, Filing Deadline and Jurisdiction

Keep the four deadlines separate

1. Presentation: Section 138(a) refers to six months from the cheque date or its validity period, whichever is earlier. RBI instructions require banks not to pay instruments presented beyond three months from their date, effective for instruments dated on or after 1 April 2012. Do not rely on a six-month banking validity.
2. Written demand: The payee or holder in due course must give written notice demanding the cheque amount within 30 days of receiving the bank's information of dishonour. This is not a 30-day payment window for the drawer.
3. Opportunity to pay: The drawer has 15 days from receipt of the notice to pay the cheque amount. Questions of service or deemed service require the applicable law and delivery evidence; a disputed receipt date should not be assumed.
4. Complaint: Section 142(1)(b) prescribes one month from the date the cause of action arises following non-payment within the notice period. One month is not interchangeable with 30 days. The provision permits delayed cognizance where sufficient cause is shown to the court.

Prepare a dated chronology using the cheque, bank communication, notice and service records. Obtain a case-specific calculation before filing; this overview is not a deadline calculator.

Which court has territorial jurisdiction?

Under Section 142(2), collection through an account ordinarily connects jurisdiction to the branch where the payee or holder in due course maintains that account. Presentation otherwise than through an account connects it to the drawee-bank branch where the drawer maintains the account. Read the statutory explanation and Section 142A for relevant transfer and subsequent-complaint rules.

The drawer's residence or the place where the cheque was casually handed over is not a substitute for this statutory test.

Presumptions, defences and company cheques

Sections 118 and 139 contain rebuttable presumptions. It is incorrect to describe every issue as resting entirely on the complainant without considering those provisions. Equally, a presumption is not an automatic conviction.

For a cheque described as security, investigate the underlying liability and the relevant dates rather than assuming the label decides the case. For a company cheque, examine Section 141 and the role and responsibility of each proposed accused; a person's designation alone should not replace that analysis.

Documents to organise

• The cheque and the bank's return memo.
• The agreement, invoices, account records or other evidence of the alleged liability.
• The demand notice, dispatch records and available delivery or returned-envelope evidence.
• The deadline chronology and facts identifying the relevant bank branch.
• For a company transaction, documents supporting the allegations about the company and responsible persons.

This is a preparation checklist, not a uniform filing rule for every registry. Confirm local filing requirements and the applicable procedural law.

Official sources

Negotiable Instruments Act: Sections 118, 138–142A and 146.

RBI Master Circular on Customer Service in Banks, paragraph 14.1.4: three-month validity.

Correction — 20 October 2026: Corrected cheque validity, notice and payment periods, the complaint deadline, jurisdiction and presumptions. Removed unsupported blanket statements about defences and service.