Alok bought some goods from Manish on credit. Later, he issued a cheque for the dues from his bank account and asked Manish to encash the cheque…

(a) Section 138 of the Negotiable Instruments Act,1881 covers dishonor of cheques for insufficiency of funds in the account. (i) Section 138 shall not apply, unless the cheque has been presented to the bank within a period of three months from the date on which it is drawn or within the period of its validity, whichever is earlier. In the instant case, Alok’s defenses are not valid as Manish presented the cheque within one month i.e. within the validity period of three months. (ii) Section 138 shall not be applied unless the below conditions are complied with: (a) Demand for the payment through the notice: The payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within30 days of the receipt of information by him from the bank regarding the return of the cheque as unpaid, and (b) Failure of drawer to make payment: The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. The complaint can be filed after45 days of dishonor of the cheque i.e.,30 days of notice period +15 days of the receipt of the said notice. Therefore, in the instant case, since Manish sent notice to Alok for outstanding debts but Alok ignored the notice, Manish can file a suit against Alok and can file a complaint within45 days of dishonor of cheque.