A Section 138 case depends on statutory timelines: a written demand notice must be sent within 30 days of receiving the bank’s information about dishonour, the drawer has 15 days after receiving the notice to pay, and a complaint must be filed within one month from the date the cause of action arises.
The cheque must also be presented within its valid period, and there must be a legally enforceable debt or liability. Under banking rules, a cheque ordinarily remains valid for three months. Do not treat ‘one month’ as ‘30 days’ in every situation. Questions such as service of notice, holidays and condonation of delay may affect the calculation.
What should you do now?
- Keep the original cheque and the bank return memo safe.
- Send a notice containing the correct statutory demand for the amount, on time and to the proper address.
- Have the final date for filing the complaint professionally calculated, taking service and the payment period into account.
Which documents should you keep?
The cheque, memo, proof of debt, notice, postal receipt and tracking details.
Do not make this mistake
Do not assume that an informal phone call or an ordinary payment reminder alone will always qualify as a valid statutory notice.
A hypothetical example
After learning that the cheque had been returned, the parties continued discussions and the notice was sent late. Do not assume that settlement discussions stop the statutory clock. Keep written calculations of the notice, service and filing dates from the outset.
Does receiving a notice mean the criminal case is complete?
No. The statutory opportunity to make payment and the subsequent complaint process are separate stages.
Legal basis and useful sources
- Negotiable Instruments Act, 1881 — Sections 118, 138–142, 147
- RBI — Three-month validity of cheques, notification dated 4 November 2011
This is general legal information. Advice may differ depending on your facts, the applicable law and state rules.