Negotiable Instruments Act

Payee has to issue notice of demand to drawer of cheque within 30 days from the receipt of cheque return memo. Court will not take cognizance of case if notice has been sent beyond the time period of 30 days and in such situation complaint is liable to be dismissed. 

Since limitation has been condoned by Supreme Court in Suo Moto writ No 3 of 2020 your notice dated 22.4.2020 for instituting a complaint under section 138 of the NI Act, 1881 is valid.

In my understanding, the extension of limitation is no application vis-a-vis the notice to be served in terms of the proviso (b) of Section 138.

Dear querist,

(1)    Since the court took Suo moto in writ number 3 of 2020 and the limitation has been removed per se then your notice for instituting a complaint U/s 138 is valid.

(2)   If the drawer of the cheque fails to pay the said amount in the legal notice which was sent by you during the validity of the cheque issue to the drawer, the civil, as well as a criminal complaint, can be filed against him which will enable you to get a compensation which is the twice the amount of the cheque, an additional request can also make under your application to claim damages such as litigation charges and traveling charges, which upon due considerations by the court may be granted to you.

Hope it helps.