Why Section 138 is time-bound
Section 138 of the Negotiable Instruments Act creates a statutory framework with strict deadlines from the date a cheque is returned. Acting quickly is essential — both for payees and drawers.
The core sequence
In broad terms, the matter moves through the cheque-return memo, a statutory demand notice within the prescribed window, a period for payment, and then a complaint filing if the demand goes unmet.
A note on outcomes
This article is general guidance, not legal advice. Outcomes in any specific matter depend on facts, documents, lender policy, and applicable law.