Cheque Bounce Matters
Cheque bounce cases are a common financial and legal issue in India. Such matters arise when a cheque is issued by an account holder and that cheque is returned and unpaid by the bank due to various reasons such as insufficient funds, signature issues, and so on. Cheque bounce lawyer in Delhi.
These cases are governed by Section 138 of the Negotiable Instruments Act, 1881.
Cheque Bounce
Cheque Bounce- This can occur for several reasons, leading to financial loss and legal consequences for the person who issued the cheque.
Some Common Reasons for Cheque Bounce
Insufficient Funds: The account does not have enough balance to cover the cheque amount, or the balance is too low in the account to cover the cheque amount and transfer to the given account.
Signature Mismatch: The drawer’s signature does not match the signature in the bank or the last updated signature in the bank.
Account Closure: If someone closed the bank account before submitting the cheque to the bank.
Stale Cheque: You can present the cheque after its validity period (usually 3 months from the date of issuance). Usually, three months from the given date on the cheque, so after that period, if you submit that cheque, it will bounce.
Alterations on the Cheque: Unauthorized modifications or overwriting. Sometimes it can happen.
Some other reasons can also be there, as per the circumstances.
Cheque Bounce Notice under Section 138 of the Negotiable Instruments Act
You can send a cheque bounce notice under Section 138 of the Negotiable Instruments Act, 1881, only after the cheque is returned unpaid by the bank. Here’s a detailed explanation of when and under what rules the notice must be sent:
📌 When Can You Send a Cheque Bounce Notice?
You can send a legal notice for cheque bounce only when:
The cheque was issued in discharge of a legally enforceable debt or liability.
Cheque is presented within its validity (within 3 months from the date on the cheque).
The cheque is returned unpaid by the bank due to:
Insufficient funds
Account closed
Payment stopped by the drawer
Signature mismatch
Exceeds arrangement
Any other reason
The bank returns the cheque unpaid and issues a “Cheque Return Memo” stating the reason.
📜 Legal Timeline and Rules (As per Section 138)
Step Timeline Rule
1. The cheque is bounced. Day 0 Bank returns cheque with “return memo”.
2. Send a legal notice to the drawer. Within 30 days of receiving the return memo, Section 138(b): Notice demanding payment.
3. Wait for payment 15 days from receipt of notice by the drawer. Section 138(c): The Drawer must make the payment.
4. If no payment is made, file a criminal complaint within 30 days after expiry of 15 days, Section 142(b): The Complaint must be filed in time.
⚖️ Key Legal Provisions
Section 138: Offence of dishonour for insufficient funds or similar reasons
Section 142: Procedure for taking cognizance of the offence
Jurisdiction: The complaint can be filed where the cheque was presented for encashment (payee’s bank branch)
🧾 Example Scenario
Cheque Date: 01 July 2025
Presented to Bank: 10 July 2025
Cheque Returned Unpaid: 12 July 2025
Notice Sent: Latest by 11 August 2025 (within 30 days)
15 Days Wait Period: Ends on 26 August 2025
Complaint Filing Deadline: Latest by 25 September 2025
✅ Checklist Before Sending Notice:
Original cheque copy and return memo
Bank statement (if needed)
Ensure the cheque was issued for a lawful debt or liability.
Documents Required for Filing a Cheque Bounce Case in Court
The bounced cheque.
The bank’s return memo detailing the reason for dishonour.
A copy of the legal notice was sent to the drawer.
Proof of delivery of the notice (postal or courier receipt).
Bank statement showing the bounced cheque.
Any agreements or contracts related to the transaction?
ID proof of the complainant (if required).
If applicable, company registration documents (for corporate cases).
We Need to Pay Attention
The drawer instructs the bank to stop payment for the cheque. Issues like overwriting, illegible handwriting, or incorrect date format.
Legal Framework for Cheque Bounce Cases Section 138 of the Negotiable Instruments Act, 1881. Cheque bounce lawyer in Delhi.
🧾 Cheque Bounce – Frequently Asked Questions (FAQs)
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- What is a cheque bounce?
A cheque is said to be bounced when it cannot be processed due to insufficient funds, signature mismatch, account closure, overwriting, or any other reason, and is returned unpaid by the bank.
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- What are the common reasons for cheque bounce?
Insufficient balance
Signature mismatch
Account closed
Stale cheque (older than 3 months)
Post-dated cheque presented early
Incorrect amount or overwriting
Mismatch in figures and words
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- What is the legal remedy for a bounced cheque in India?
Under Section 138 of the Negotiable Instruments Act, 1881, the payee can:
Send a legal demand notice within 30 days of the bounce
Give 15 days to the drawer to pay
If unpaid, file a criminal complaint within 30 days after the 15th day
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- Is a cheque bounce a criminal offence?
Yes. It is a criminal offence under Section 138 of the Negotiable Instruments Act, punishable with:
Imprisonment up to 2 years
Monetary fine up to twice the cheque amount, or both
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- Can I also file a civil case?
Yes. You can file a civil suit for recovery of the cheque amount along with interest and legal expenses, separately or simultaneously.
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- What is the timeline for filing a cheque bounce case?
Legal notice: Within 30 days from the date of the bounce memo
Payment period: 15 days from receipt of notice
Complaint filing: Within 30 days after expiry of 15 days if payment is not made
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- What documents are required to file a cheque bounce case?
Original bounced cheque
Bank return memo
Copy of legal notice
Postal/courier receipt or delivery proof
Affidavit and complaint
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- What happens after filing the complaint?
The court will:
Issue a summons to the accused
Conduct a pre-trial hearing
Begin trial and examine evidence
Pass a judgment — conviction/acquittal
Cheque Bounce Lawyer in Delhi
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- Can I settle the matter out of court?
Yes. At any stage, you may settle through mutual agreement. The court may also refer the matter to mediation or Lok Adalat.
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- Can the accused be arrested in a cheque bounce case?
Not immediately. It is a bailable offence, and the court may issue a bailable warrant if the accused fails to appear despite a summons.
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- Is it mandatory to send a legal notice before filing the case?
Yes. Serving a demand notice is mandatory under Section 138. Without it, the complaint is not maintainable.
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- What if the cheque was given as a gift or donation?
Cheque bounce cases are maintainable only if there was a legally enforceable debt or liability.
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- What if the accused changes address or absconds?
The court may issue non-bailable warrants, attach property, or declare the accused a proclaimed offender under the CrPC.
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- Can the drawer challenge the case?
Yes. The drawer can contest the case on the grounds:
No legally enforceable debt
Cheque stolen/misused
The signature was forged
The notice was defective or not received
Disclaimer: This article is for educational and informational purposes only. It provides a general understanding of legal remedies but does not constitute legal advice. For specific legal guidance, consult a legal expert.
