[S.138 NI Act] Cheque Bounce Complaint Can Be Filed If Payment Is Not Made Within 15 Days: Delhi High Court

The Delhi High Court has dismissed a cheque drawer's contention that Section 138 Negotiable Instruments Act proceeding initiated against him is premature, since it was filed before the '45 days statutory notice period'.The Petitioner-drawer sought to combine the 15-days statutory notice period stipulated under Section 138 of the NI Act and the one-month limitation period prescribed under Section 142 of the Act.Dismissing this contention, Justice Girish Kathpalia held,“The period of 45 days under reference is not a lump sum consolidated period; it is 15 days (after service of statutory notice, to pay vide proviso (c) to Section 138 of the Act) plus 30 days (to file complaint under Section 141(1)(b) of the Act).” (sic) Section 138(c) stipulates that cheque dishonour proceedings can be initiated against a drawer of cheque if it fails to make payment within 15 days of receipt of notice sent by the payee, making demand.Section 142(1)(b) stipulates that the Court can take cognizance of the offence only if the complaint is made within one month of the date on which the cause of action arises.The High Court thus observed that the argument of complaint being premature is completely devoid of merit.“The period of 30 days or 31 days (the provision uses the expression “one month”) is akin to the limitation period after arising of cause of action. The cause of action arises if by 15th day of service of the statutory notice, the cheque amount is not paid by the drawer,” it said.In the facts of the case, the Court noted that the statutory notice was served on the Petitioner on September 22, 2022. That being so, the Court held that the time to make payment of the cheque amount expired on October 07, 2022 (15 days) and the complaint case could be filed by November 06, 2022 (one month).Since the complaint was filed on October 29, 2022, the Court held that the same is within the prescribed period of limitation.As such, it dismissed the petition with ₹10,000/- costs.Appearance: Mr. Bibek Tripathi, Advocate for Petitioner; Mr. Nawal Kishore Jha, APP for State. Case title: Rama Oberoi v. StateCitation: 2025 LiveLaw (Del) 1059Case no.: CRL.M.C. 6228/2025Click here to read order

[S.138 NI Act] Cheque Bounce Complaint Can Be Filed If Payment Is Not Made Within 15 Days: Delhi High Court

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