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Trusted Partner in Cheque Bounce Cases

Cheque bounce: frequently asked questions

What is the time limit to file a cheque bounce case in India?

There are three deadlines under the Negotiable Instruments Act, 1881. The payee must send a written demand notice within 30 days of receiving the bank’s information that the cheque was dishonoured. The drawer then has 15 days from receiving that notice to pay. If payment is not made, the complaint must be filed within 30 days after that 15-day period expires. Missing any of these deadlines can defeat the complaint.

What is the punishment for a bounced cheque under Section 138?

Section 138 of the Negotiable Instruments Act, 1881 provides for imprisonment of up to two years, or a fine of up to twice the cheque amount, or both. Courts frequently order compensation to the payee in addition to, or in place of, a sentence.

Where should a cheque bounce complaint be filed?

Under Section 142(2) of the Negotiable Instruments Act, as amended in 2015, the complaint must be filed before the court within whose jurisdiction the branch of the bank where the payee maintains the account is situated.

Is a cheque bounce case civil or criminal?

It is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881, tried by a Magistrate, though it is compoundable and is frequently settled. The payee may separately file a civil summary suit to recover the money itself, and the two proceedings can run in parallel.

What if the cheque was given only as security?

A cheque issued purely as security, and not towards a legally enforceable debt or liability existing on the date of the cheque, falls outside Section 138. Whether a particular cheque was security or was towards an existing liability is a question of fact, and it is one of the most commonly contested issues in these matters.

What documents should I bring for a cheque bounce case?

Bring the dishonoured cheque, the bank return memo stating the reason for dishonour, proof of the underlying debt or liability such as an invoice or agreement, and any legal notice already sent or received along with its postal proof.

This page is general information about Indian law, not legal advice. For advice on your own matter, call +91 70907 21111.