Recovery & Disputes

Cheque Bounce

Statutory notices and complaints under Section 138 of the NI Act for dishonoured cheques.

  • Raipur, Chhattisgarh
  • Partner-led
  • Fixed or milestone fees on request

A bounced cheque is not just a payment problem — under Section 138 of the Negotiable Instruments Act, 1881 it is a criminal offence, with a strict timeline that both sides must follow.

The Section 138 timeline

Step Time limit
Present the cheque to the bank Within its validity (3 months from the date on the cheque)
Send a legal demand notice Within 30 days of the bank’s return memo
Drawer must pay Within 15 days of receiving the notice
File the complaint Within one month after those 15 days end

What we do

  1. Check the timeline and documents — cheque, return memo, underlying invoice or agreement.
  2. Draft and send the statutory notice by registered post and other traceable modes.
  3. File the complaint before the competent court in Raipur with your evidence affidavit.
  4. Seek interim compensation under Section 143A where appropriate.
  5. Settlement or trial — the offence is compoundable, and many matters settle once proceedings begin.

For drawers

If you have received a Section 138 notice, the 15-day window matters. A timely, well-drafted reply and an early settlement discussion can avoid prosecution.

FAQ

Cheque Bounce: common questions.

01How soon must I send a legal notice after a cheque bounces?

Within 30 days of receiving information from the bank that the cheque was dishonoured. Missing this window can defeat the complaint.

02Can the complaint be filed in Raipur if the drawer lives elsewhere?

Generally yes. Under Section 142(2), the complaint lies where the bank branch of the payee is situated — so if you presented the cheque through your account in Raipur, the Raipur court usually has jurisdiction.

03What is the punishment for cheque bounce?

Imprisonment of up to two years, a fine of up to twice the cheque amount, or both. Courts may also order interim compensation of up to 20% of the cheque amount.

Contact

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