How To File A Police Complaint For Cheque Bounce In India – Step-By-Step Legal Guide & IPC Sections

Cheque bounce cases have become alarmingly frequent in India. According to data from the National Judicial Data Grid, over 40 lakh cheque bounce cases are pending across various courts in the country, accounting for a major chunk of criminal case backlogs. These cases often stem from failed payments in business deals, loan repayments, rent agreements, or informal lending arrangements. While many consider a bounced cheque a minor financial issue, Indian law treats it as a serious offence that can lead to criminal prosecution, imprisonment, and hefty fines. Despite the severity of the law, a large number of victims remain unaware of the correct legal procedure to deal with a dishonoured cheque, particularly when it involves fraud or cheating. This lack of awareness delays justice and weakens the chances of successful recovery.

In this blog, we will explore:

• What constitutes a cheque bounce and why is it legally punishable
• The difference between filing a police complaint and filing a court complaint
• When to approach the Magistrate’s Court and when to approach the police
• Step-by-step process for filing a police complaint in cheque bounce cases involving fraud
• List of documents required to file a complaint
• Timelines and jurisdiction rules for filing a valid case
• Legal process after filing and the possible outcomes
• Penalties, civil remedies, and how repeat offenders may face blacklisting

Whether you're a business owner, landlord, lender, or individual facing a bounced cheque situation, this guide will help you navigate your legal options with confidence.

What Is a Cheque Bounce and Why Is It a Legal Offence?

A cheque bounce happens when the cheque issued by a person is not honoured by the bank. The most common reasons for cheque bounce include insufficient funds, signature mismatch, overwriting, closed account, or expiry of the cheque. When the bank returns the cheque unpaid, it is marked as "dishonoured" or "bounced."

In India, cheque bounce is not just a banking issue but a punishable offence under Section 138 of the Negotiable Instruments Act, 1881. This law provides legal recourse to the payee by allowing them to initiate criminal proceedings against the drawer of the bounced cheque. The objective is to deter people from issuing cheques irresponsibly or fraudulently.

For the legal offence to be established, the following conditions must be met:

• The cheque must have been issued to discharge a legally enforceable debt or liability.
• The cheque must be presented to the bank within its validity period (usually 3 months).
• The payee must send a written legal notice to the drawer within 30 days of the bank returning the cheque.
• The drawer must fail to make payment within 15 days of receiving the notice.

If these steps are completed and the drawer still does not pay, the payee can file a criminal complaint in court. The punishment under Section 138 can include imprisonment for up to two years, a monetary fine which may extend to twice the cheque amount, or both.

Can You File a Police Complaint for Cheque Bounce?

This is a very common question among cheque bounce victims. In most cases, filing a police complaint is not the appropriate legal step. Cheque bounce is primarily a civil-criminal offence, and the law provides a specific remedy through the court system, not through the police.

Difference Between a Police Complaint and a Court Complaint

• A court complaint is filed under Section 138 of the Negotiable Instruments Act in a Magistrate’s Court. It is a criminal complaint, but it follows a procedural timeline and is initiated by the payee.
• A police complaint or FIR is applicable only when there is criminal intent or fraudulent behaviour involved, such as issuing cheques with knowledge that the account has insufficient funds or from a closed account, as part of a scheme to cheat someone.

When Is a Police Complaint Applicable

You can approach the police when the cheque bounces is part of a larger fraudulent act, and not just a financial dispute. In such cases, provisions of the Bharatiya Nyaya Sanhita

(BNS) may be invoked, such as:

• Section 318(4) – Cheating and dishonestly inducing the delivery of property
• Section 316(2) – Criminal breach of trust

Examples where a police complaint may be justified:

• A person issues multiple post-dated cheques knowing there are no funds, as part of a deliberate scam.
• A company takes money from several clients using fake promises and issues cheques that are knowingly unpayable.
• A builder collects booking amounts from homebuyers and gives them bounced cheques for refund while shutting down the business.

In such cases, the complainant may approach the police with a written complaint, and if evidence of criminal intent is strong, an FIR may be registered.

Role of Police vs. Court in Cheque Bounce Cases

What Is the Typical Legal Process for Cheque Bounce Cases?

1. The payee deposits the cheque, which is returned unpaid by the bank.
2. A legal notice must be sent to the drawer within 30 days from the date of cheque dishonour.
3. The drawer is given 15 days from the date of receiving the notice to make payment.
4. If no payment is made, the payee may file a criminal complaint in the Magistrate’s Court within 30 days after the expiry of the 15-day notice period.
5. The court may summon the drawer, conduct a trial, and if found guilty, penalise them.

Important Clarification: When Is FIR Allowed

Filing an FIR is not automatic or routine in cheque bounce cases. Police stations typically do not entertain FIRs unless there is clear evidence of cheating, misrepresentation, or criminal breach of trust. Filing an FIR in a simple cheque bounce matter (without fraud) will likely be rejected, and the complainant will be advised to pursue court proceedings instead.

When to File at Police Station vs Magistrate Court?

Understanding whether to approach the police station or the Magistrate’s Court is crucial in cheque bounce matters. Both have distinct roles, but they are not interchangeable.

Approach the Magistrate's Court When:

• The cheque bounce occurred due to insufficient funds, signature mismatch, or stale cheque.
• There is no element of fraud, only non-payment.
• You want to file a case under Section 138 of the Negotiable Instruments Act, 1881.
• You have already sent a legal notice, and the drawer failed to make payment within the 15-day window.
• You are seeking a criminal remedy (fine and imprisonment) via a structured legal process.

The Magistrate’s Court is the default and legally prescribed route for regular cheque bounce matters. Over 90 percent of such cases in India are resolved here.

Approach the Police Station When:

• You have strong evidence of fraud or cheating.
• The cheque was issued as part of a larger fraudulent scheme (example: advance money for services never rendered).
• The drawer had criminal intent from the beginning and never intended to make the payment.
• You are invoking Section 420 (Cheating) or Section 406 (Criminal Breach of Trust) of the Indian Penal Code.
• You are looking to register an FIR to initiate a police investigation.

Police involvement is only possible in exceptional cases involving fraud, and even then, you may be asked to approach the court for direction if the police are unwilling to register the FIR.

Step-by-Step Guide: How to File a Police Complaint for Cheque Bounce

If your case involves criminal intent or fraud, and you need to file a police complaint, here is a researched and verified step-by-step guide:

Step 1: Gather Necessary Evidence and Documents

Before approaching the police, ensure you have proper documentation to support your complaint:

• The bounced cheque (original and photocopy)
• The cheque return memo issued by the bank (mentioning the reason for dishonour)
• Copy of the legal notice you sent to the drawer
• Acknowledgment of receipt of the notice (courier slip, tracking report, or reply)
• Any communication from the drawer admitting default or intent
• Identity proof and address proof of the complainant
• Details of the financial transaction and the bank account

Step 2: Draft the Complaint

Write a clear and concise written complaint addressed to the Station House Officer (SHO) of the local police station where:

• The drawer resides, or
• The cheque was handed over, or
• The bank dishonoured the cheque

The complaint should include:

• Full details of the parties involved
• Date and place of the transaction
• Cheque number, date of issue, amount, and the bank details
• Description of how you were misled or cheated
• Request for registration of an FIR under relevant IPC sections (usually Section 420 or 406)
• A request for investigation and appropriate legal action

Make two copies of the complaint: one for submission and one for acknowledgment.

Step 3: Submit to the Police Station

• Visit the local police station with your complaint and all supporting documents.
• Submit the complaint to the Duty Officer or SHO.
• Request acknowledgment with the diary number on your copy.
• If the police find your case prima facie valid, they may register an FIR.
• If the police refuse to register the FIR, you can:
• • (1) File a written complaint with the Superintendent of Police (SP), or
  • Approach the Magistrate under Section 173(4) CrPC, asking the court to direct the police to investigate.

Note: Filing a police complaint does not replace your right to proceed under Section 138 of the Negotiable Instruments Act. You may still file a parallel case in the Magistrate’s Court for cheque bounce, especially if compensation or penalty is your goal.

Documents Needed for Filing a Cheque Bounce Police Complaint

If you are planning to file a police complaint for a cheque bounce case that involves fraud or cheating, you must be well-prepared with all the necessary documents. These will help support your allegations and assist the police in verifying the facts before registering an FIR.

Here is a complete list of documents required:

1. Copy of the Bounced Cheque
2. • Keep a photocopy of the dishonoured cheque. If the original is submitted elsewhere (such as in court), ensure you have a notarized or certified copy.
2. Cheque Return Memo from the Bank
3. • This memo should clearly state the reason why the cheque was dishonoured. Common reasons include insufficient funds or account closed.
3. Copy of the Legal Notice
4. • The legal notice must have been sent to the drawer within 30 days of the cheque being returned unpaid.
4. Proof of Delivery of Legal Notice
5. • Submit the postal receipt, courier slip, tracking report, or any acknowledgment showing that the notice was received by the drawer.
5. Evidence of the Underlying Transaction
6. • Include payment receipts, invoices, loan agreements, or bank statements to show that the cheque was issued against a legally enforceable debt or obligation.
6. Any Communication Records
7. • Attach copies of emails, WhatsApp messages, or SMS where the drawer acknowledges the debt or gives false commitments.
7. Identity and Address Proof
8. • Submit documents like Aadhaar card, voter ID, passport, or PAN card to establish your identity.
8. Written Complaint Copy
9. • Prepare a detailed complaint explaining the facts of the case. Carry two copies of the complaint — one for submission and one to get a receiving acknowledgment from the police.

Having these documents ready ensures that your case is complete and credible in the eyes of the police and judicial authorities.

Timeline to File a Cheque Bounce Police Complaint

Understanding the time limits for different legal steps is very important in cheque bounce matters. Missing a deadline may weaken or even invalidate your complaint under certain laws.

Under the Negotiable Instruments Act (Section 138 Process):

• Cheque presentation: The cheque must be deposited in the bank within three months from the date of issue.
• Legal notice: If the cheque bounces, a legal notice must be sent to the drawer within thirty days of receiving the cheque return memo.
• Waiting period: You must give the drawer fifteen days from the date of receipt of the notice to make the payment.
• Filing court complaint: If no payment is made, a criminal complaint must be filed before the Magistrate within thirty days after the fifteen-day period ends.

This entire process must be followed step by step to successfully file a case under Section 138 of the Negotiable Instruments Act.

For Police Complaint under BNS [Sections 316(2) or 318(4)]:

• There is no strict time limit defined by law.
• However, it is advisable to file the police complaint as soon as you realize that the cheque was issued with fraudulent intent.
• If there is an unreasonable delay, the police may question your intent or treat the matter as a civil dispute rather than a criminal offence.

Best Legal Practice:

• Do not delay the court process while pursuing police action. You can proceed with both in parallel, especially if there is evidence of cheating.
• Even if the police do not act immediately, your case under Section 138 should be filed within the timeline to protect your rights.

Acting promptly is essential in cheque bounce cases. Courts have fixed timeframes, and timely police complaints carry more credibility and urgency.

Legal Process After Filing the Complaint

Once you have filed a cheque bounce complaint either in court or through the police (if fraud is involved), the legal process begins. The steps differ slightly depending on whether the case is handled under the Negotiable Instruments Act or under the Indian Penal Code.

Court Summons and Hearings

If you have filed a complaint under Section 138 of the Negotiable Instruments Act:

1. The Magistrate will first examine the complaint and the documents submitted.
2. If the complaint is found to be valid, the court will issue a summons to the drawer of the cheque.
3. The accused must appear before the Magistrate on the given date. If they fail to appear, the court may issue a bailable or non-bailable warrant depending on the circumstances.
4. After the appearance, the accused may either admit the offence or contest the claim. If contested, the matter proceeds to trial.
5. Both parties are allowed to submit evidence and witnesses during the trial.

This process can take several months, depending on the backlog in the local court.

Role of Police

In a standard cheque bounce case under Section 138, the police are not involved. The process is handled entirely by the court.

However, police may get involved in the following situations:

• If the accused fails to appear despite multiple summons, and a warrant is issued by the court, the police may be directed to serve the warrant or produce the accused.
• If you have also filed a separate police complaint under Section 420 or 406 of the IPC due to fraud or cheating, the police will investigate the criminal aspects of the case.
• The police may conduct inquiries, collect evidence, and arrest the accused in criminal fraud-related complaints.

Possible Outcomes

After the court hears both sides, the case can result in the following outcomes:

• Conviction: The court may find the accused guilty. The person may be punished with imprisonment of up to two years, a fine of up to double the cheque amount, or both.
• Settlement: In many cases, parties choose to settle outside court, often during trial. The case may be withdrawn after a compromise.
• Acquittal: If the court finds that the complainant failed to prove the case or procedural steps were not followed properly, the accused may be acquitted.
• Compounding: Section 147 of the Negotiable Instruments Act allows compounding of offences, meaning the parties can mutually agree to settle at any stage.

Penalties and Remedies

Cheque bounce cases carry both punitive and compensatory consequences for the drawer of the cheque.

Penalties Under Section 138

• Imprisonment: The court can sentence the drawer to up to two years in jail.
• Fine: The court may impose a fine up to twice the cheque amount.
• Both: In serious cases, the court may impose both imprisonment and a fine.

Civil Remedies Available to the Payee

In addition to criminal penalties, the payee has options to recover the money:

• The court may direct the drawer to pay compensation to the complainant.
• Under Section 357 of the Criminal Procedure Code, the court can order payment of compensation even if a fine is not imposed.
• The complainant can also file a civil recovery suit for the cheque amount along with interest and legal costs.

Remedies When Fraud or Cheating is Involved

If the cheque bounce was part of a fraudulent act, additional remedies may include:

• FIR registration and police investigation under IPC provisions.
• Arrest and prosecution of the accused under Section 420 or 406.
• In severe cases, attachment of property or freezing of bank accounts may be requested through court orders.

Can the Offender Be Blacklisted?

Although a cheque bounce itself does not result in blacklisting, repeated offences or criminal convictions can:

• Affect the drawer's CIBIL score and credit rating.
• Lead to bank account restrictions.
• Impact future borrowing ability and reputation in financial dealings.

Conclusion

Cheque bounce cases may seem like routine financial disputes, but under Indian law, they carry serious legal consequences. Whether the issue arises from a business transaction, personal loan, or rent agreement, a dishonoured cheque is a punishable offence under Section 138 of the Negotiable Instruments Act. In cases where there is evidence of fraud or criminal intent, remedies are also available under the Bharatiya Nyaya Sanhita. The legal process can seem complex, especially when deciding whether to approach the police or the Magistrate’s Court. As a general rule, regular cheque bounce matters without fraud are to be taken to court, while only cases involving cheating or criminal breach of trust can be reported to the police.

By following proper legal timelines, maintaining accurate documentation, and understanding your rights, you can take effective legal action to recover your money and ensure accountability. Acting promptly and choosing the right legal forum increases the chances of a successful outcome, whether through conviction, compensation, or settlement. If you are dealing with a cheque bounce situation, consider consulting a qualified lawyer to evaluate your case and guide you through the most effective legal remedy based on the facts of your situation.