How To File A Cheque Bounce Case In India As Per Section 138 The Negotiable Instruments Act (NI Act), 1881

Cheque bounce cases are extremely common in India, affecting everything from business payments and personal loans to rent agreements. Whether you are a business owner, a freelancer, or a landlord, dealing with a dishonoured cheque can be frustrating and financially damaging. However, the law protects you. A dishonour of a cheque due to insufficient funds is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881. This means the defaulter can face imprisonment or heavy fines if found guilty.

By the end of this guide, you will know the exact steps, timelines, documents, and common mistakes to avoid when filing a cheque bounce case in India.

What is a Cheque Bounce Case Under Section 138 of the NI Act?

Imagine you buy something from a shop and give them a cheque. A cheque is basically a written promise to the shopkeeper that says, "I have money in my bank, and my bank will pay you this amount." When the shopkeeper goes to the bank and the bank says, "Sorry, this person has no money," that promise is broken. This is called "Dishonour of Cheque" or simply, Cheque Bounce.

In many countries, owing money is just a civil matter (a money dispute). But in India, under Section 138 of the Negotiable Instruments (NI) Act, bouncing a cheque is a Criminal Offence.

Here is the breakdown of why this law exists and how it works:

1. It is Treated Like a Crime, Not Just a Debt

Typically, if you fail to pay a loan, the bank files a civil lawsuit to recover the money. But Section 138 makes bouncing a cheque a crime (similar to theft or fraud).

• Why? The government wants people to trust cheques. If cheques bounced all the time without consequence, nobody would accept them for business, rent, or trade.
• The Intent: The law assumes that if you gave a cheque, you knew you had to keep the corresponding funds available. Failing to do so is seen as dishonest.

2. The "Insufficient Funds" Rule

Section 138 specifically targets cases where the cheque bounces because:

• Insufficient Funds: You did not have enough balance in your account.
• Exceeds Arrangement: The cheque amount is higher than the limit your bank allowed you to spend (like an overdraft limit).

3. The Punishment is Strict

Because it is a criminal offence, the punishment is severe to scare offenders into paying:

• Jail Time: You can go to jail for up to 2 years.
• Heavy Fine: You might have to pay double the cheque amount as a penalty (e.g., if the cheque was for ₹1 Lakh, the court can ask you to pay ₹2 Lakh).
• Both: In many cases, the court gives both punishments.

Summary Table: Civil vs. Criminal (Section 138)

A normal money recovery dispute is usually a civil case, where the main aim is to get your money back. But a cheque bounce case under Section 138 is treated as a criminal case, which adds the risk of court punishment (including possible arrest/jail)- and often works faster than a regular civil suit.

Legal Conditions You Must Meet Before Filing a Cheque Bounce Case (Section 138)

Before filing a cheque bounce case, make sure your situation matches these 5 legal conditions under Section 138 of the Negotiable Instruments Act. If even one condition is missing, your complaint can be rejected.

Condition 1: The cheque must be for a real, legal payment (legally enforceable debt)

You can file a cheque bounce case only if the cheque was issued to pay a legal debt or liability, like loan repayment, payment for goods/services, rent, or business dues. You cannot file a case if the cheque was given as a gift, donation, or for any illegal purpose.

Condition 2: Present the cheque within the cheque validity period

You must deposit the cheque in your bank within its validity. In India, a cheque is generally valid for 3 months from the date written on the cheque. If you present it late, the case may not stand.

Condition 3: The cheque must bounce, and you must collect the bank return memo

Your bank must officially return the cheque unpaid (dishonoured). After that, the bank gives a Cheque Return Memo mentioning the reason- like “Insufficient Funds”, “Account Closed”, or “Payment Stopped.”This return memo is key proof in a Section 138 cheque bounce case.

Condition 4: Send a legal notice within 30 days of cheque bounce

After you receive the return memo (or bank intimation), you must send a written legal notice to the cheque issuer (drawer) within 30 days. This is the required cheque bounce legal notice step before filing the complaint.

Condition 5: The drawer does not pay within 15 days after receiving the notice

The legal notice gives the defaulter a final chance to pay. They get 15 days from the date they receive the notice to clear the amount. If payment is not made within these 15 days, the offence becomes complete, and you can file the cheque bounce complaint in court.

Time Limit – Within How Many Days Should You File a Cheque Bounce Case?

Timing is critical in legal matters. Missing a deadline can bar you from filing a case.

Documents Required to File a Cheque Bounce Case

Documents Checklist

A) Must-have documents (compulsory)

• Original Cheque (the bounced cheque)
• Bank Return Memo / Cheque Return Memo (shows reason like “Insufficient Funds”)
• Cheque deposit slip/bank acknowledgement (proof you presented the cheque)
• Copy of legal notice for cheque bounce (Section 138 notice)
• Proof of sending notice (Speed Post/Registered Post receipt + tracking)
• Proof of delivery/refusal (delivery report/refusal proof, if available)

B) Supporting documents (to prove the money was legally due)

• Invoice/bill (for goods/services)
• Agreement/contract
• Loan proof / promissory note
• Account statement/ledger
• WhatsApp chats, emails, and messages showing payment due
• Any written acknowledgement of dues

C) ID details for filing the complaint

• Your ID & address proof (Aadhaar/PAN/Voter ID/Passport)
• Accused details (name, address, contact, business details if any)

Step-by-Step Process: How to File a Cheque Bounce Case in India

Note: These steps are verified based on the standard procedure under the Negotiable Instruments Act (as amended).

This is the simple and complete process to file a cheque bounce case under Section 138. Think of it like a fixed legal route: Cheque bounces → Notice → Wait → Court complaint. If you follow the steps and deadlines properly, your case becomes much stronger.

Step 1 – Check if your case comes under Section 138

Before doing anything, confirm these points:

• The cheque was given for money that was actually due (loan, bill payment, goods/services payment, rent, etc.).
• You deposited the cheque in the bank within the cheque’s valid time.
• The bank returned it unpaid, and you received a Cheque Return Memo (proof of bounce).
• You sent a cheque bounce legal notice within the allowed time.
• The person did not pay even after getting the notice.

If any of these points are missing, your case can get rejected. If you are confused, take a lawyer’s advice once.

Step 2 – Collect and organise all documents

Keep these documents ready in one file:

• Original cheque
• Cheque return memo from the bank
• Deposit slip/bank proof (shows you deposited the cheque)
• Copy of legal notice
• Post receipt + tracking report (proof notice was sent)
• Proof of payment due (invoice, agreement, WhatsApp chats, emails, etc.)
• Your ID/address proof and the drawer’s correct address

These documents help you prove your case quickly in court.

Step 3 – Send the Cheque Bounce Legal Notice (if not already sent)

A cheque bounce legal notice is a written warning to the person who issued the cheque. It basically says:

• “Your cheque has bounced.”
• “Pay the full amount.”
• “If you don’t pay, I will file a Section 138 case.”

Important: This notice must be sent within 30 days from the day you received the bank’s bounce memo/information.

Step 4 – Wait for 15 days after the notice is received

Once the person receives the notice, the law gives them 15 days to pay.

• If they pay within 15 days → no Section 138 case
• If they do not pay → now you have the legal right to file the case (this is called a cause of action)

This waiting period is compulsory.

Step 5 – Prepare the court complaint (Criminal Complaint under Section 138)

Now you file the case in court using a written complaint. In simple words, the complaint explains:

• Who gave the cheque and who received it
• Why was the money due
• Cheque details (date, amount, number)
• Bounce details (return memo reason)
• Notice details (when you sent it + proof)
• That the person did not pay within 15 days

Also attach:

• List of all documents
• List of witnesses (usually, you are the main witness)

Step 6 –Choose the Correct Court and Fill Court Forms

A cheque bounce case is filed in a Magistrate Court (JMFC / Metropolitan Magistrate).

You also need to submit basic court paperwork, like:

• Party details (cause title)
• Index and document list
• Complaint + attachments

Choosing the correct court area matters; your case may be returned.

Step 7 – File the case within the deadline

After the 15-day notice time finishes and no payment is made, you should file the case within 1 month. If you delay too much, the court may reject it.

Step 8 – Pre-Summoning Evidence / Sworn Statement (before summons)

After filing, the court may ask you to:

• Submit an affidavit (written, sworn statement), or
• Give a short statement in court

The Magistrate checks if your case looks genuine and complete.

Step 9 – The court sends a summons to the accused

If the Magistrate is satisfied, the court issues a summons to the person who gave the cheque.

• The accused comes to court (or sends a lawyer)
• The case then continues further as per legal procedure

Conclusion

Cheque bounce cases under Section 138 of the Negotiable Instruments Act are meant to protect honest payees and ensure that cheque payments remain reliable in India. Although the process may seem complex, understanding the cheque bounce rules, legal conditions, timelines, and filing procedure makes it much easier to take the right action. This blog covers everything you need to know—what a cheque bounce case is, when Section 138 applies, the strict time limits, required documents, the step-by-step process to file a cheque bounce case in India, and common mistakes to avoid. From depositing the cheque on time to sending a valid cheque bounce legal notice and filing the complaint within the deadline, every step is crucial for success. When followed correctly, a Section 138 cheque bounce case helps you recover your money faster and holds the defaulter legally accountable, ensuring a smoother and more effective legal remedy.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Laws and procedures may vary by case, Cheque Bounce Case in India (Section 138) – Procedure, Time Limit, Legal Notice & Documentsays consult a qualified Legal Expert for advice specific to your situation.

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