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About Cheque Bounce Information

Procedure followed in Cheque Bounce Case

It’s the negotiable instrument Act 1881, section 138 which comes into play when we are talking about matters about Cheque bounce. A cheque is said to be bounced when banks refuse payment.

The reason for cheque bounce could be many like overwriting, mismatch of signature, mismatch in figure amount, and that mention in words.

These are very small issues that could be addressed without the involvement of courts.  The major issue arises when payment of the amount is refused on the account of insufficient funds.

If anybody gets a cheque that is dishonoured by the bank then he got two remedies first bounced check legal action is the issue of the legal notice and if the legal notice about demand is not addressed then after fifteen days, you can file the complaint in the court of law.

The person who is affected by the non-payment has to keep in mind that if the required action is not taken on time, then can lead to a lack of remedy as the case of the cheque bounce is time bonded. Therefore, it becomes important to address the issues of the bounced cheque in the time allowed to avoid later consequences like cheque bounced but money in account.

What is the Procedure Followed in the Cheque Bounce Case?

  • Issue the legal notice regarding the bounce to the maker of the instrument for demand request.
  • The notice must have details about the bounced cheque, it should have information such as the date when the cheque was issued and attach a copy of the dishonoured cheque memo.
  • Wait for a period of fifteen days from the date when notice of demand is sent.
  • If the notice is not addressed by the receiver, then you can proceed in the court of law.
  • Do, not forget to attach the letter of the oath, photocopy of the legal notice made, acknowledgments receipt, and memo of cheque bounce with the complaint form.
  • When the court gets your complaint, it will verify your concern and check the documents you send.
  • On being satisfied with the issue the court sends summon to appear to be a concerned party, the lawyer should file the processing fee duly
  • If the party at fault hesitates to appear or does not appear before the court, the court had got the power to issue a warrant against the person in question.

Where the cheque bounce can lead you?

Section 138 of the negotiable instrument makes it a criminal offense, so if anyone files a complaint of the cheque bounce in a court of law d you are found at fault, the court got the power to punish you by sending you to prison for the period of two years and or fine, the amount of fine can be as high as twice the amount of the fine.

In some cases, the court can punish you both ways if it finds the infraction in a heinous form. In some events, the court may grant additional time.

There cheque bounce case can be filed.

The complaint for the cheque bounce can be made in the place where the bank of the payee is located.

The supreme court had observed that the complaint of cheque bounce cannot be transferred as per the convenience of the accused under section 138.

The criminal procedure code section 406 gives power to the supreme court regarding the transfer of cases and appeals, the provision says that “ Whenever it is made to appear to the SC that an order under this section is expedient for the end of justice, it may direct that any particular case or appeal be transferred from one HC to another or from a criminal court subordinate to a higher court to another court of equal or superior jurisdiction subordinate to another high court.

Reason for Pending Cases Under Section & Action

The supreme court of India had taken the Suo moto cognizance of the pending case under section 138 of the NI act of 1881 through the case of Re: Expeditious trial of the case.

The court found out that a lot of pending cases about cheque bounce for the last 20 years were at different stages. The court has therefore issued certain steps to be followed while dealing with cases under section 138 of the NI act.

The reasons recorded by the amicus curie appointed are:

  • Delay in issuing summons
  • Conversion into summon trial form summary without recoding reasons for same.
  • Inconsistency while deciding whether issuance of process under section 202 requires preliminary inquiry.
  • Offence committed as part of the same transactions are not jointly tried under section 220.

The magistrate is asked to conduct the inquiry on the receipt of the complaint. , it will help him to know the grounds to proceed further.

The evidence of the witness shall be permitted on affidavits for the conduct of inquiry under section 202.

The magistrate must record reasons while converting summary trials into summon trials.

Is the legal advice or assistance of a lawyer needed for Cheque Bounce Cases?

The assistance of the lawyer in the case management of the cheque bounce case is a much-needed thing you can’t do without it. Be it the drawer of the case or the drawee of the case. The lawyer will help you with the paperwork of the case, they will also help you by creating loopholes in the opponent’s case.

The lawyer can help you to know the merits of your case, by making you understand the legal provisions of the case.  The cheque bounce case takes the time and energy of both parties to suit so it’s always better to choose the professional to present your case.

He /she can help the clients to reach the compromise, by providing the opportunity for the defaulter to rectify their mistake.


The decision in the case of cheque bounce takes a year or more but if the matter is duly represented before the court and the primary and relevant evidence to support the case is clear before the court, then your judgment can be delivered within a few months.

Some cases are even solved amiably without the intervention of the court. It all depends upon the complexity involved in the case., is the leading platform for legal services, Book your Consultation now.