A cheque of ₹3 lakh issued by a customer is dishonoured for insufficiency of funds and returned by the bank to the payee with a memo. Under s.138 of the Negotiable Instruments Act 1881, the drawer becomes liable if, after receipt of a valid statutory notice, he fails to make payment of the cheque amount within:

Section 138 of the Negotiable Instruments Act 1881 penalises dishonour of a cheque for insufficiency of funds or where the amount exceeds the arrangement with the bank. The proviso requires the holder to demand payment by notice in writing within thirty days of receiving information from the bank about the return of the cheque, as enlarged by the 2018 amendment. If the drawer fails to pay the cheque amount within fifteen days of receipt of such notice, the dishonour becomes an offence punishable with imprisonment up to two years, or a fine up to twice the cheque amount, or both. The complaint must be filed within thirty days of the cause of action, extendable by fifteen days. Fifteen days is therefore the correct payment window, not seven, ten, thirty or forty-five days.