By S&S Co. Advocates & Solicitors · Published 20 September 2026 · Informational content, not legal advice — see our disclaimer
The 30-Day Demand Notice
On dishonour, the payee has 30 days from the date of the bank's return memo to issue a statutory demand notice under Section 138 of the Negotiable Instruments Act, 1881, and the drawer then has 15 days from receipt of that notice to make payment. The notice must claim the exact cheque amount — the Supreme Court's 2025 ruling in Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul (2025 INSC 1133) confirms that any discrepancy between the notice amount and the cheque amount is fatal to the resulting complaint, so drafting the notice carefully for the precise cheque figure is not a formality.
Filing the Criminal Complaint
If payment is not made within the 15-day period, the payee must file a written criminal complaint before the Judicial Magistrate having jurisdiction over the bank branch where the cheque was presented, ordinarily within 30 days of the cause of action arising. On receipt of a complaint, the Magistrate examines the complainant's sworn statement or affidavit under Section 145 of the Act, along with supporting documents, before issuing summons or dismissing the complaint.
Multiple Cheques, One Transaction
Where several cheques issued in connection with a single underlying transaction are dishonoured on different dates and followed by separate statutory notices, each dishonoured cheque gives rise to a distinct, independent cause of action under Section 138 — the Supreme Court has confirmed that multiple complaints arising from the same transaction are not, by that fact alone, an abuse of process. A payee holding several post-dated or instalment cheques from the same debtor can pursue a separate complaint for each dishonoured cheque.
Unaffected by the New Criminal Codes
Section 138 and the rest of Chapter XVII of the Negotiable Instruments Act remain a standalone central statute, unaffected by the Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita or Bharatiya Sakshya Adhiniyam — the cheque-bounce notice procedure, timelines and jurisdiction rules are unchanged from the pre-2024 framework, notwithstanding the broader overhaul of India's general criminal law.
Settlement Remains Available at Any Stage
Section 147 of the Act permits compounding, or settlement, of the offence at any stage, including after a criminal complaint has already been filed, and courts actively encourage early settlement in Section 138 matters given the essentially commercial character of the underlying dispute.
Frequently Asked Questions
How much time do I have to send a demand notice after a cheque bounces?
30 days from the date of the bank's return memo. The drawer then has 15 days from receipt of that notice to make payment before a criminal complaint can be filed.
Does the demand notice have to claim the exact cheque amount?
Yes. The Supreme Court's ruling in Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul confirms that any discrepancy between the amount claimed in the notice and the actual cheque amount is fatal to the resulting complaint.
Can I file separate complaints for multiple bounced cheques from the same transaction?
Yes. Each dishonoured cheque gives rise to a distinct, independent cause of action under Section 138, and the Supreme Court has confirmed multiple complaints arising from the same transaction are not, by that fact alone, an abuse of process.
Can a Section 138 case be settled after the complaint is filed?
Yes. Section 147 of the Act permits compounding of the offence at any stage, including after a criminal complaint has been filed, and courts actively encourage early settlement given the essentially commercial nature of these disputes.
References & Further Reading
This article references the following statutory provisions. Readers should always verify current rules, fees and timelines against the applicable statute and rules as amended, since these are revised from time to time.
- Negotiable Instruments Act, 1881, Sections 138, 145 and 147, as amended.
- Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul, 2025 INSC 1133 (decided 19 September 2025).
- Sumit Bansal v. MGI Developers and Promoters, 2026 INSC 40 — multiple cheques from one transaction give rise to distinct causes of action.