If a cheque you received bounces for insufficient funds, the Negotiable Instruments Act gives you a remedy — but it is strictly time-bound. Missing a deadline can cost you the case, so act promptly and keep every document.
The broad sequence
- The cheque is dishonoured and the bank issues a return memo.
- Send a demand notice to the drawer within the prescribed time.
- Allow the notice period for payment to pass.
- If unpaid, file a complaint within the limitation period.
Deadlines decide the case
Section 138 has strict timelines for the notice and the complaint. Keep the return memo, notice, and postal proof safe, and do not delay.
Section 138 is a criminal offence, but you can also pursue civil recovery of the amount. Both routes can sometimes run together.