Cheque Bounce Cases — Section 138, Negotiable Instruments Act
A dishonoured cheque gives you a criminal remedy, but it runs on a strict clock. You have 30 days from the bank's return memo to send a legal notice, and if payment does not follow within 15 days, 30 further days to file the complaint. Miss those windows and the criminal case is usually gone.
What we handle
- Legal notice to the drawer within the 30-day window
- Filing a Section 138 complaint before the Magistrate
- Defending an accused summoned under Section 138
- Interim compensation applications under Section 143A
- Summary suits and recovery proceedings alongside the criminal complaint
- Settlement and compounding at any stage
Key facts
- Governing provision
- Section 138, Negotiable Instruments Act, 1881
- Notice window
- 30 days from receipt of the bank's cheque return memo
- Waiting period
- 15 days from service of the notice for the drawer to pay
- Filing window
- 30 days after the 15-day period expires
- Maximum punishment
- Up to two years imprisonment, or fine up to twice the cheque amount, or both
- Where filed
- Magistrate's court within whose jurisdiction the payee's bank branch is located
How it works
- Send the noticeDrafted and dispatched by registered post and email, with proof of service retained. This is the step most people get wrong or send late.
- Wait out 15 daysIf the money comes, the matter ends. If it does not, the cause of action crystallises.
- File the complaintComplaint with affidavit, bank memo, notice and postal receipts filed before the Magistrate.
- Summons and trialThe court records pre-summoning evidence, issues summons, and the matter proceeds. Most cheque cases settle before final arguments.
Common questions
What if I missed the 30-day notice deadline?
The criminal remedy under Section 138 is ordinarily lost for that presentation. However, if the cheque is still within its validity period it can sometimes be re-presented, which starts a fresh cause of action. A civil recovery suit also remains available independently.
Can I recover the money, or only get the drawer punished?
Both are possible. Courts routinely award compensation under Section 357 of the criminal procedure law, and Section 143A allows interim compensation of up to 20 per cent of the cheque amount during the trial itself.
I have been summoned in a cheque case. What now?
Appear or seek exemption through your advocate — non-appearance can lead to coercive orders. There are real defences: no legally enforceable debt, notice not properly served, cheque given as security, or the complaint being time-barred.
Does the case have to be filed where I live?
It is filed where the branch of the bank in which the payee presented the cheque is situated. For most Delhi-based payees, that means a Delhi court.
Speak to an advocate about this.
Send your documents on WhatsApp and get an assessment of your position, usually the same day.