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Cheque Bounce Cases

Section 138 of the Negotiable Instruments Act runs on strict timelines — missing the 30-day notice window can cost you the case. We act fast for payees, and defend accused persons with equal rigor.

A dishonoured (bounced) cheque is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881, but pursuing it correctly requires strict adherence to statutory timelines: a demand notice within 30 days of the dishonour memo, a 15-day window for the drawer to pay, and a complaint filed within one month after that window closes if payment isn't made.

We draft and dispatch the demand notice, prepare and file the criminal complaint if payment isn't received, and represent clients through the court process — or, where our client is the accused, build a defense addressing liability, notice validity, or settlement.

Who Needs This

  • Businesses or individuals who received a bounced cheque as payment.
  • Lenders or creditors whose post-dated cheque security has been dishonoured.
  • Individuals accused under Section 138 who need to respond to a notice or complaint.
  • Anyone needing to negotiate a settlement to compound a pending Section 138 matter.

Strategic Benefits

  • Notice dispatched within the statutory 30-day window
  • Properly drafted complaint that withstands procedural challenge
  • Defense strategy for accused persons, including settlement negotiation
  • Court representation through to compounding or verdict

Process Timeline

Stage 1

Legal Notice

Demand notice drafted and sent within 30 days of the cheque return memo.

Stage 2

15-Day Response Window

Drawer has 15 days to make payment before a complaint becomes maintainable.

Stage 3

Complaint & Court Proceedings

Complaint filed before the Magistrate if unpaid, followed by trial or settlement.

Note: strict adherence to the 30-day notice deadline is essential — missing it can bar the complaint entirely. Contact us as soon as a cheque is dishonoured.

Required Documents

  • • Original cheque and bank dishonour memo
  • • Proof of the underlying debt or liability
  • • Address proof of the drawer, for notice service
  • • ID proof of the payee/complainant
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Frequently Asked Questions

Under Section 138 of the Negotiable Instruments Act, 1881, the payee must send a written demand notice to the drawer within 30 days of receiving the bank's dishonour memo, demanding payment of the cheque amount.

If the drawer fails to pay within 15 days of receiving the notice, the payee can file a criminal complaint under Section 138 before the appropriate Magistrate's court within one month of the expiry of that 15-day period.

A conviction under Section 138 can result in imprisonment for up to two years, a fine of up to twice the cheque amount, or both, though many matters are resolved through compounding (settlement) before reaching a final verdict.

Timelines Are Everything Here

Don't Miss the 30-Day Notice Window

Book a direct, obligation-free preliminary consultation with Advocate Akhil M. Satani.