If a cheque bounces, send a written demand notice within 30 days of receiving the bank's return memo. The person who issued it then has 15 days from receiving the notice to pay. If they don't, you can file a complaint under Section 138 of the Negotiable Instruments Act within one month after those 15 days end.
What are the time limits for a cheque bounce case?
| Step | Time limit | Where it comes from |
|---|---|---|
| Present the cheque | Within its validity, normally 3 months from its date | Section 138, proviso (a) |
| Send demand notice | Within 30 days of the bank's return memo | Section 138, proviso (b) |
| Drawer pays | Within 15 days of receiving the notice | Section 138, proviso (c) |
| File complaint | Within 1 month after the 15 days end | Section 142(1)(b) |
What are the steps after a cheque bounces?
- Keep the return memo from your bank showing why the cheque was dishonoured, such as “funds insufficient”.
- Send the legal notice within 30 days, demanding the cheque amount within 15 days. Use a method that gives proof of delivery, such as registered or speed post.
- Wait 15 days from the date the notice is received.
- File the complaint before the magistrate within one month, with the cheque, return memo, notice and delivery proof.
- Trial or settlement. The offence can be settled (compounded) under Section 147 at any stage.
Which court do I file in?
Under Section 142(2), in the court where the branch of the bank in which you (the payee) hold your account is located.
Can I file a cheque bounce case after 30 days?
The 30-day limit for the notice is strict. If you missed it, you may be able to present the cheque again while it is still valid, get a fresh return memo and send a new notice. The Supreme Court allowed this in MSR Leathers v. S. Palaniappan (2012). A late complaint, as opposed to a late notice, can be accepted if the court is satisfied there was sufficient cause for the delay.
What is the punishment for cheque bounce?
Up to two years' imprisonment, a fine of up to twice the cheque amount, or both. The court can also order the accused to pay interim compensation of up to 20% of the cheque amount while the case is pending (Section 143A).
I received a cheque bounce notice. What should I do?
Don't ignore it. Paying within 15 days of receiving it avoids a complaint. If you dispute the debt, for example because no legally enforceable debt existed, send a reply through an advocate within that time.
Sources
Last reviewed 2 November 2026. This guide is general information, not legal advice. See our editorial policy.