Overview
When a cheque is dishonoured due to insufficient funds or a stopped payment, it is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881. The payee can demand the amount by issuing a statutory legal notice within 30 days of the cheque return memo, and file a complaint if the drawer fails to pay within 15 days of receiving the notice.
Key Provisions — Negotiable Instruments Act, 1881
- Section 138 makes cheque dishonour punishable with up to 2 years imprisonment or a fine up to twice the cheque amount.
- A legal demand notice must be sent within 30 days of receiving the bank's cheque-return memo.
- The drawer gets 15 days to pay; failing which a complaint can be filed within the next 30 days.
- Courts may award the cheque amount plus interest and compensation to the complainant.
What You Can Claim
How We Solve It
Issue Legal Notice
Our advocates draft and send a Section 138 demand notice within the limitation period.
Wait 15 Days
The drawer is given the statutory window to clear the dues.
File Complaint
If unpaid, we file a complaint before the jurisdictional magistrate.
Recover Dues
We pursue the case until your amount and compensation are recovered.
Frequently Asked Questions
What is the time limit to send a cheque bounce notice?
Within 30 days of receiving the cheque-return memo from the bank.
Is cheque bounce a criminal offence?
Yes, under Section 138 of the Negotiable Instruments Act it is punishable with imprisonment and/or fine.