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What is a Cheque Bounce Case? Understand Section 138 of NIA

A cheque bounce (also known as dishonour of cheque) occurs when a bank refuses to honor a cheque due to

  • Insufficient funds
  • Signature mismatch,
  • Account closure,
  • or technical errors like overwriting.

The penalties are severe, including imprisonment up to 2 years, fine up to twice the cheque amount, and compensation to the payee. 

Why you need a Cheque Bounce Lawyer

Filing a cheque bounce complaint under Section 138 of the Negotiable Instruments Act is a time-bound and technical process where a minor mistakes can weaken your case.

As experienced cheque bounce lawyers, we understand that time is of the essence in cheque dishonour cases; whether you're the payee or drawer, swift action is important. Our in-depth knowledge of proceedings under Negotiable Instruments Act assures you recovery your funds quickly through legal channel.

Consequences of a Cheque Bounce Case for Complainant & Accused

Person Who Wrote the ChequePerson Who Received the Cheque
Can go to jail for up to 2 yearsLoses money temporarily
Must pay a fine up to double the cheque amountSpends time and effort on legal recovery
Gets a criminal recordCan recover the full amount plus compensation

Checklist : Things to do Immediately After a Cheque Bounces

Time is of the essence in cheque dishonour cases. Whether you are the payee or the drawer, swift action is important and required.

  └─ For the Payee (Complainant)

If you have received a cheque from someone and it has bounced for any reason then follow the below steps:

  1. Send a Legal Demand Notice: You must engage an advocate to send a legal notice demanding the payment for the amount mentioned on the cheque within the period of 15 days.
  2. File a Complaint: If the payment is not made within 15 days of sending the legal notice then you have 30 days to file a criminal complaint under section 138 of Negotiable Instruments Act.

  └─ For the Drawer (Accused)

If you have issued a cheque to someone and that cheque has been bounced then you make sure you dont do the following mistakes:

  1. Do Not Ignore the Legal Notice: Receiving a legal notice for cheque bounce is serious. Ignoring it will lead to a criminal case being filed against you.
  2. Seek Legal assiatance Immediately: Contact an experienced cheque bounce lawyer to understand your options and liabilities.
  3. Settle the case or Defend: Your lawyer will advise you on whether to settle the matter out of court to avoid criminal prosecution or to prepare a strong defense if you have a valid legal ground.

Timeline for Filing Cheque Bounce Case

1

Cheque Presented and Bounced

Your Bank will issue you a Memo of dishonour stating the reason why the cheque has been bounced.

2

Send Legal cum Demand Notice

You must send a legal cum demand notice within the period of 30 days after the cheque has bounced through your Advocate demanding the money to be paid within 15 days.

3

Wait for 15 Days Response Time

The Drawer need to make you payment within the period of 15 days after receiving the Legal Notice. Failing to which, the cause of action will arise and you are entitled to file a criminal complaint against him.

4

File Criminal Complaint

If no payment is made within 15 days of sending the legal notice, you must file a complaint under Section 138 of the Negotiable Instrument Act within 30 days.

Why Choose Metis Law Chamber for Cheque Bounce Case

✅ Proven expertise in handling Section 138 cases

Metis Law Chamber have experienced lawyers in handling complex cheque bounce cases under the Negotiable Instruments Act with deep knowledge of legal procedures.

✅ High success rate in recovering dues for clients

We have a track record of successfully recovering money for clients and achieving favorable result in cheque dishonour litigation.

✅ End-to-end legal support from Notice to Trial

We provide End-to-end assistance from drafting legal notices to court representation, ensuring efficient representation throughout the process till your money is recovered.

✅ Transparent communication and regular case updates

We provide regular updates and progress reports so you stay informed about your case at every stage.

✅ Tailored strategies for both complainants & accused

Effective approach for both complainants seeking recovery and accused requiring defense, based on case-specific needs.

Frequently Asked Questions on Cheque Bounce Cases

Is cheque bounce a criminal offence?

Yes, cheque bounce is a quasi-criminal case under Section 138 of Negotiable Instruments Act which may lead to imprisonment or fine.

How much time does it take for cheque bounce case to complete?

Cheque bounce case duration varies based on several key factors including court workload, how quickly the accused receives legal notices, and the speed of evidence completion. On average, these cases take 6 months to 2 years to resolve, depending on case complexity and the aforementioned procedural factors.

Can I defend myself if a false cheque bounce case is filed?

Yes, absolutely. Our team has successfully helped many clients fight against fake or unfair cheque bounce cases and protected them from false allegations.

Can a cheque bounce case be settled out of court?

Yes, cheque bounce cases are compundable in nature and they can be setlled out of court through mediation and negotiation proceedings. Our cheque bounce lawyers excel in mediating settlements to avoid long litigation.

What documents are needed for a cheque bounce complaint?

In order to file cheque bounce case, you need the original cheque, bank return memo, legal notice copy, and proof of postal receipts.

Is cheque bounce a bailable or non-bailable offense?

Cheque bounce is a bailable offence, but non-appearance in the court proceedings can lead to warrants.