Criminal Law
Cheque bounce complaints and defence under Section 138
Complaints and defence under Section 138 of the Negotiable Instruments Act.
Dishonour of a cheque for insufficient funds can lead to criminal liability under Section 138 of the Negotiable Instruments Act, 1881. The law sets strict timelines for presentation, notice and filing of the complaint, and missing any one of them can defeat an otherwise valid claim.
Who may need this service
- A cheque given to you for a debt or liability has been dishonoured
- You have received a demand notice or summons in a cheque bounce case
- A security cheque has been misused against you
How the process works
- Checking that the cheque was presented within its validity period
- Sending the statutory demand notice within 30 days of the return memo
- Waiting 15 days from the drawer's receipt of the notice for payment
- Filing the complaint within one month after the 15-day period ends
- Evidence, arguments and, if appropriate, settlement or compounding
Documents you may need
- Original dishonoured cheque and the bank's return memo
- Copy of the demand notice with postal or courier receipts
- Proof of delivery of the notice, if available
- Documents showing the underlying debt or liability
How we can help
For complainants, we make sure each statutory deadline is met and the complaint is filed in the court with jurisdiction. For accused persons, we examine whether the cheque was issued for a legally enforceable debt and whether the procedure was followed, and we explore settlement where it serves you.
Frequently asked questions
Under Section 138 of the NI Act, imprisonment of up to two years, a fine of up to twice the cheque amount, or both. The court may also order interim compensation of up to 20% of the cheque amount under Section 143A.
Yes. The offence is compoundable, and many cases are settled by payment at any stage, including through mediation or Lok Adalat.
Speak to an advocate about Cheque Bounce Cases
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