Cheque Bounce Cases (Section 138, Negotiable Instruments Act)

A dishonoured cheque can lead to a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881. The law sets strict time limits, so acting promptly matters for both the payee and the person who issued the cheque. NG Associates represents complainants and accused persons in cheque bounce cases before Delhi courts.

Key Time Limits Under Section 138

1. The cheque must be presented within its validity, usually 3 months from its date.
2. After dishonour, the payee must send a written demand notice within 30 days of receiving the bank’s return memo.
3. The drawer gets 15 days from receiving the notice to pay.
4. If payment is not made, the complaint must be filed within 1 month after those 15 days end.

Matters We Handle

• Drafting and sending Section 138 demand notices and replies
• Filing complaints and leading evidence
• Defending accused persons, including on questions of debt, liability and limitation
• Interim compensation applications (Section 143A) and appeals, including deposit under Section 148
• Settlement and compounding of cases

Frequently Asked Questions

What is the punishment for cheque bounce?

Imprisonment of up to 2 years, or a fine of up to twice the cheque amount, or both.

Where can a cheque bounce case be filed?

Generally, in the court with jurisdiction over the bank branch where the payee maintains the account in which the cheque was deposited (Section 142(2)).

What if I miss the 30-day notice deadline?

A Section 138 complaint cannot be based on that dishonour, but the cheque can be presented again within its validity, which starts a fresh cycle. A civil recovery suit may also remain available.

Can a cheque bounce case be settled?

Yes. The offence is compoundable, so parties can settle at any stage with the court’s approval.

Our chambers are in the Rohini Court Complex. Read how matters proceed there: Rohini Court Lawyers – NG Associates.

Contact NG Associates

Block 1, Lawyers’ Chambers, Rohini Court Complex, New Delhi – 110085
Phone: +91 93191 90118

The information on this page is for general information only and is not legal advice.

Request a Legal Consultation