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What is the time limit to file a cheque bounce case in India?

22-Dec-2024
Cheque Bounce

Answer By law4u team

In India, the time limit to file a cheque bounce case is governed by Section 138 of the Negotiable Instruments Act, 1881. The process involves several time-bound steps: 1. Time Limit for Sending Legal Notice: After the cheque is dishonored (bounced) by the bank, the holder of the cheque must send a demand notice to the drawer (the person who issued the cheque) within 30 days from the date of receiving the information about the dishonor of the cheque (usually from the bank). The notice must demand payment of the dishonored amount and give the drawer a time frame (usually 15 days) to make the payment. 2. Time Limit to File a Case: If the drawer does not make the payment within 15 days after receiving the demand notice, the payee (the person who received the cheque) can file a cheque bounce case under Section 138 in the appropriate court. The case must be filed within one month from the expiry of the 15-day period mentioned in the notice. In other words, the total time from the cheque bounce to filing the case is 45 days (30 days to send the notice + 15 days to wait for payment). 3. Extension for Filing a Case: The court may extend the period for filing the case by another 30 days if there is a valid reason for the delay. Therefore, in exceptional circumstances, the total time limit could extend to 75 days from the date of dishonor of the cheque. Summary: 30 days to send a legal notice after the cheque bounces. 15 days for the drawer to pay after receiving the notice. 1 month (from the expiry of the notice period) to file a case in court. In some cases, additional 30 days may be granted by the court for filing the case. Failure to adhere to these time limits can result in the dismissal of the case.

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