Cheque bounce action under section 138

This query is : Resolved

Quick Summary

Under Section 138 of the Negotiable Instruments Act, there is no requirement for a cheque to bounce three times. A single dishonor is sufficient for legal action. The limitation period for issuing notice starts from the date of receipt of the bank return memo for the cheque dishonor being relied upon.

abhijit majumder

abhijit majumder (Querist)
Follow

07 May 2026 Sir

1. A issued cheque to B.
2. B submitted cheque to bank.
3. Cheque bounce and B returned cheque to A with intimation letter.
4. A again issued to B which again bounced and returned by B.

My queries are:
1. When I ask B for reason B told me that for taking cognizance U/s 138 requires 3 time bounce.
I never find it anywhere.
2. In this case for taking action U/s 138 counting of days (45 days U/s 138)starting from which date? ie after cheque bounce for 3rd time of after 1st time
Regards
Abhijit

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

07 May 2026 There is no "3-bounce" rule; one bounce is sufficient for legal action. The counting of days for the legal notice starts from the date you receive the return memo from the bank for the specific dishonor you intend to act upon.

abhijit majumder

abhijit majumder (Querist)
Follow

08 May 2026 Thanks sir for reply.
Your valuable comment strengthening my view..
Regards
Abhijit

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now