Tip: the three cheque bounce deadlines that decide whether you can file a case

When a cheque bounces, the Negotiable Instruments Act gives the payee a criminal remedy — but only if three deadlines are met. We see many people lose that remedy by missing one of them.

The three deadlines

• Thirty days to send the demand notice. The payee must send a written notice demanding payment within thirty days of receiving the bank’s information that the cheque was returned unpaid.
• Fifteen days for the drawer to pay. The drawer has fifteen days from receiving the notice to pay the amount.
• One month to file the complaint. If payment is not made, the complaint must be filed within one month after the fifteen days end.

Practical points

• Keep the bank’s return memo and the envelope or tracking record of the notice.
• Send the notice to every address you have for the drawer.
• The cheque must have been given for a legally enforceable debt or liability.
• Presenting the cheque again before sending notice is allowed within its validity, but the thirty days then run from the latest return.

Our cheque bounce guide explains each step. We prepare the demand notice and the complaint papers; the case in court is argued by an advocate you engage directly, whose fee is agreed between you and the advocate.