Cheque Bounce — Section 138 NI Act
Fast, disciplined recovery under Section 138 of the Negotiable Instruments Act.
Section 138 cases are won or lost on deadlines. The statutory notice must go within 30 days of dishonour, and the complaint within 30 days after that — miss either and the remedy is gone. We run a high-volume cheque-bounce practice built around those dates, acting for payees pursuing recovery and for accused persons defending complaints that should never have been filed.
- Governing law
- Section 138, Negotiable Instruments Act, 1881
- Forum
- Judicial Magistrate First Class
- Notice deadline
- 30 days from the dishonour memo
- Complaint deadline
- 30 days after the 15-day notice expires
Scope of services
Our approach
- 01
Notice
Statutory demand notice drafted and served within 30 days of the dishonour memo, with dispatch proof preserved — this is where most cases are lost.
- 02
Complaint
Complaint filed within limitation with a complete document set, once the 15-day payment window expires without payment.
- 03
Trial
Summary trial pushed to a quick conclusion, using the statutory presumptions under Sections 118 and 139 to keep the burden on the drawer.
- 04
Recovery
Compensation, interim compensation and cost recovery followed through — including execution where the accused stalls.
Documents to bring
Bring whatever you have of the following to the first consultation. Missing a document is not a reason to delay — we will tell you how to obtain it.
Book a consultation- Original dishonoured cheque
- Bank return memo stating the reason for dishonour
- Proof of the underlying debt — invoice, loan or agreement
- Copy of the legal notice and postal receipts
- Acknowledgement or tracking proof of notice delivery
- Bank statement showing the transaction
- Any reply received from the drawer
Questions we hear often
Have a different question? Book a confidential consultation and we'll walk you through the specifics.
What is the punishment for cheque bounce?
Up to two years' imprisonment, or a fine up to twice the cheque amount, or both. In practice courts most often award compensation equal to the cheque amount plus interest, with a default sentence if it is not paid.
What are the exact deadlines I must meet?
Three of them. Present the cheque within its three-month validity. Send the statutory legal notice within 30 days of receiving the bank's dishonour memo. Then, if payment is not made within 15 days of the notice, file the complaint within the next 30 days. Missing any one of these is usually fatal to the case.
Can I get part of my money before the trial ends?
Yes. Section 143A allows the court to order interim compensation of up to 20% of the cheque amount even before conviction, and Section 148 lets the appellate court require a deposit of at least 20% if the accused appeals a conviction.
The cheque was given only as security. Am I still liable?
Often yes. Courts presume a cheque was issued to discharge a debt, and a 'security cheque' defence only succeeds where you prove there was no legally enforceable debt at all on the date of presentation. It is a defence worth running, but it must be built on documents, not assertions.
What if the notice was sent but returned undelivered?
Refusal or non-collection at the correct address counts as valid service. The Supreme Court in C.C. Alavi Haji held that a drawer who avoids the notice cannot benefit from that avoidance, provided the notice went to the right address by registered post.
Can a cheque bounce case be settled and withdrawn?
Yes. Section 138 is a compoundable offence, and courts actively encourage settlement — often through Lok Adalat. Once the amount is paid and a compromise is recorded, the complaint is withdrawn and the accused stands acquitted.
Ready to discuss your cheque bounce — section 138 ni act matter?
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