Explainer · Limitation · Promissory Notes
Limitation Period for a Promissory Note or Bond in India (2026)
Promissory notes, bonds and cheques all carry a 3-year suit period, but they catch people out because the day the clock starts changes with how the instrument is payable. A cheque adds a second, much shorter deadline for a criminal cheque bounce complaint. This guide gives the exact Article of the Limitation Act, 1963 for each kind of note and bond, the starting date, and the separate one-month window for a cheque bounce case. Last verified October 2026.
- Demand note: 3 years from the date of the note, under Article 35.
- Note payable at a fixed time: 3 years from maturity, under Article 31.
- Bond: 3 years from the specified payment day, or from execution if no day is fixed.
- Dishonoured cheque: a Section 138 complaint has a short day-count window; a civil suit on the amount has 3 years.
01The short answer
A suit to recover money on a promissory note or a bond must be filed within 3 years under the Limitation Act, 1963. The day the clock starts depends on how the note is payable. A note payable on demand runs from the date of the note. A note payable at a fixed time runs from the date it falls due.
A dishonoured cheque is different and has two timelines. To file a criminal cheque bounce complaint under Section 138 of the Negotiable Instruments Act, you must act within a short window measured in days. To file a civil suit to recover the cheque amount, the usual 3-year period applies.
02Promissory notes: which Article applies
The Schedule to the Limitation Act, 1963 fixes the starting point by the way the note is payable.
| Type of promissory note or bill | Article | Period | Time runs from |
|---|---|---|---|
| Payable on demand (no writing postponing the right to sue) | 35 | 3 years | Date of the note |
| Payable at a fixed time after date | 31 | 3 years | When the note falls due (maturity) |
| Payable at a fixed time after sight or after demand | 34 | 3 years | When the fixed time expires |
| Payable by instalments | 36 | 3 years | Expiry of the first instalment for that part, and each later instalment for the rest |
The most common type is a demand note, which falls under Article 35: the 3 years run from the date written on the note, not from the day you demand payment. This surprises many lenders, who assume the clock starts only when they ask for the money. If the note is payable at a fixed future date, the clock starts on that maturity date under Article 31.
03Bonds
A bond is a written instrument acknowledging a debt and promising to pay. The period is again 3 years, with the starting point set by whether a payment day is specified:
- Bond with a specified payment day: time runs from that day.
- Bond with no payment day specified: time runs from the date the bond is executed.
As with notes, the written terms decide the start date, so read the instrument carefully before you count the 3 years.
04Dishonoured cheques: two separate deadlines
A bounced cheque gives you two different routes, each with its own clock. Do not confuse them.
1. Criminal cheque bounce complaint (Section 138)
Under the Negotiable Instruments Act, 1881, after a cheque is dishonoured you must first send a demand notice within 30 days of learning of the dishonour. The drawer then gets 15 days to pay. If payment is not made, the cause of action arises, and you must file the complaint within one month of that date under Section 142. A delay can be condoned if you show sufficient cause, but you should not rely on that.
2. Civil suit to recover the amount
Separately, you can sue to recover the cheque amount as a debt. That civil suit carries the usual 3-year period under the Limitation Act.
Act on a cheque within days, not months
The criminal cheque bounce route moves on a strict day count: 30 days to send the notice, 15 days for the drawer to pay, then one month to file. Diarise all three the moment the cheque bounces.
For the full cheque bounce process, see our pages on the cheque bounce notice under Section 138 and how to file a cheque bounce complaint.
05Acknowledgment and part payment
For the civil claim, a signed written acknowledgment of the debt, or a part payment made before the 3 years expire, can start a fresh period:
- Acknowledgment in writing (Section 18): a signed admission of the liability, made in time, gives a fresh 3 years from the date of that writing.
- Part payment (Section 19): a part payment, recorded in the payer's writing, made in time, can also give a fresh period.
Keep the note, the ledger and any written admission safe. For the wider money-recovery picture, see our explainer on the limitation period for money recovery.
06If the deadline has passed
A civil suit on a note, bond or cheque filed after 3 years is usually barred, and Section 5 condonation does not apply to suits. A cheque bounce complaint filed after its window may still be admitted if the court condones the delay for sufficient cause, but that is discretionary. Before giving up, check:
- The exact starting date on the note, which may be later than you assumed.
- Any written acknowledgment or part payment within the last 3 years.
- Whether the cheque route is still open, or whether only the civil suit remains.
The general rules for all civil claims are in our explainer on the limitation period for civil cases.
07Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
Cheque and note matters often move to court, and a cheque bounce case in particular runs through notice, complaint, summons and many hearings. If your matter escalates to a complaint, a suit or an appeal, you can create a FREE Claw account to track it across 9,102 courts, benches and forums, with hearing and order alerts so you never miss a date. You can also search 30 crore+ judgments, with Supreme Court decisions from 1950 and High Court decisions from 1990, to see how courts have treated note limitation and Section 138 timelines on similar facts, with results in under 5 seconds. Claw does not use your case documents to train its AI models.
Create a FREE Claw account to track your cheque or note matter and every hearing, and use case search across Indian courts to find how courts decided similar cases.
08Sources and further reading
- Limitation Act, 1963 (bare Act and Schedule): indiacode.nic.in
- Negotiable Instruments Act, 1881: indiacode.nic.in
- Limitation Act Schedule text: devgan.in
- Claw: clawlaw.in
This page is general information, not legal advice. The right Article and the starting date depend on how the instrument is payable, so confirm the current text before you act.
09Frequently asked questions
What is the limitation period for a promissory note in India?
It is 3 years under the Limitation Act, 1963. For a note payable on demand, the 3 years run from the date written on the note (Article 35). For a note payable at a fixed time, they run from maturity (Article 31). For a note payable after sight or demand, from when the fixed time expires (Article 34).
Does the clock on a demand promissory note start when I demand payment?
No. For a demand note under Article 35, the 3 years run from the date of the note itself, not from the day you demand payment. This is a common and costly mistake, so note the date on the instrument and count from there.
What is the time limit for a cheque bounce complaint?
A cheque bounce case under Section 138 of the Negotiable Instruments Act moves on a strict day count: send a demand notice within 30 days of learning of the dishonour, allow the drawer 15 days to pay, then file the complaint within one month of that cause of action under Section 142. Delay can be condoned for sufficient cause.
Is a cheque bounce complaint different from a civil suit on the cheque?
Yes. The Section 138 complaint is a criminal case with a short filing window measured in days. A civil suit to recover the cheque amount as a debt carries the usual 3-year limitation period. The two run on separate clocks and you can pursue them separately.
Can a written acknowledgment extend the period on a note?
For the civil claim, yes. Under Section 18 a signed written acknowledgment of the debt made before the 3 years expire gives a fresh period of 3 years, and under Section 19 a part payment recorded in writing can do the same. An admission made after the period has lapsed does not revive the claim.