Article

Cheque Dishonour: Understanding the Statutory Timeline

Notice periods, cause of action and limitation in proceedings arising from a dishonoured cheque.

11 April 2026 · 5 min read

Proceedings under Section 138 of the Negotiable Instruments Act, 1881 follow a strict timeline that begins with the return of the cheque unpaid.

A demand notice must be issued within thirty days of receipt of information regarding dishonour, and the cause of action arises only when the drawer fails to make payment within fifteen days of receiving that notice.

This note is general information and is not legal advice.

This note is published for general information only. It is not legal advice and does not create an advocate–client relationship.

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