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Cheque bounced by a customer who owes your pump: steps and time limits

Short answer

A cheque that comes back unpaid can lead to a criminal complaint, but only if the steps are followed in time: present it within its validity (3 months in practice), send a written demand within 30 days of the bank's return memo, give the drawer 15 days to pay, then file within 1 month NI Act 1881, s.138 NI Act 1881, s.142. The law allows up to 2 years' jail, or a fine up to twice the amount, or both.

MDG Services makes Khata Kavach, so this page comes from the maker of one of the apps it may mention. It is general information, not legal, tax or financial advice. Facts about other apps are taken from their own websites and app listings on the date shown and can change, so check them there before you decide.

Facts checked on 27 October 2026. Published by MDG Services on 4 November 2026.

The steps and their clocks

This page is for a petrol pump whose regular customer, a transporter, gave a cheque against diesel credit, and it came back.

StepTime limitSource
Present the cheque to the bankWithin its validity: 3 months in practiceNI Act 1881, s.138
Bank returns it unpaid (not enough money, or more than the arranged amount)You get a return memoNI Act 1881, s.138
Send a written demand to the transporterWithin 30 days of the bank's return memoNI Act 1881, s.138
The transporter's time to pay15 days from receiving your demandNI Act 1881, s.138
File the complaintWithin 1 month after those 15 days endNI Act 1881, s.142

File only after the 15 days have ended.

A made-up timeline

Made-up dates and figures. A cheque for Rs 1,50,000 from Gupta Transport to Sharma Fuels is dated 1 September 2026.

DateWhat happensNext deadline, about
1 Sep 2026The transporter hands over the chequePresent by 1 Dec 2026
20 Sep 2026You deposit it
24 Sep 2026Bank returns it unpaid; you get the memoDemand by 24 Oct 2026
10 Oct 2026You send the demand; the transporter receives it on 12 OctTransporter pays by 27 Oct 2026
27 Oct 202615 days end, nothing paidFile by 27 Nov 2026

What may fall outside

The offence needs a cheque given for a legally enforceable debt. A security cheque, or a disputed or time-barred debt, may fall outside. The result depends on the facts of your case.

After the cheque bounces

Record it as not paid: cheque number, date, bank and the reason on the memo. Stop new credit until the account is clear: see when to stop credit. The wider route is on the legal steps page.

In Khata Kavach, an owner or manager can reverse a payment entered by cheque, with a reason. The old line stays, and the bill it was recorded against shows as due again. See how a wrong entry is corrected.

General information, not legal advice. For your own case, speak to an advocate or a chartered accountant.

Questions people ask

01Can I send the notice after 30 days?

The 30 days is for the written demand NI Act 1881, s.138. If you are near 30 days or past it, speak to an advocate at once.

02Do the 15 days run from posting the notice?

No. They run from the day the transporter receives it NI Act 1881, s.138. Keep the postal or courier receipt and a record of delivery.

03What should I do on the day a cheque bounces?

Photograph the cheque and the return memo, and write down the date you got the memo. Every deadline above counts from dates like these.

04Is the cheque case the same as a claim for the price of diesel?

They are separate routes. The time limit for the price of diesel is on the time limit page. An advocate can tell you which route suits your case, or both.

Related pages

Legal notice, mediation and suit for unpaid dues: the stepsUnpaid diesel credit dues of a petrol pump in India: the written demand, mediation for larger claims, the summary suit and interest, in plain words and in order.
Time limit to recover money for diesel sold on credit in IndiaFor diesel sold on credit the usual time limit to sue is 3 years. When the clock starts, what starts it afresh, and what is still unsettled.
When to stop giving diesel on credit to a transporter, and how to do it without a fightSigns that a transporter has stopped paying on time, a rule to decide in advance, polite words to tell him, and how a pump restarts credit after he pays.
Getting paid for diesel on credit: the steps from first reminder to last resortA ladder for a petrol pump that gives diesel on credit to transporters: before it is due, the due day, 15 to 30 days late, a written demand, and the last legal steps.

About Khata Kavach (advertisement)

Khata Kavach is a shared credit book for petrol pumps, from MDG Services. The transporter asks before each truck fills, your nozzle man sees the limit before he fills, and both of you see every fill, payment and bill. It never lends or holds money.

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