Cheque Bounce (NI Act 138)
Legal process for recovering money from a bounced cheque.
Overview
Under Section 138 of Negotiable Instruments Act, bouncing a cheque is a criminal offense. You must send a legal notice within 30 days of the bounce memo.
1Step-by-Step Instructions
Demand Notice
Send a legal notice via Registered Post within 30 days of receiving the bank memo. Give 15 days time to pay.
- Delaying notice beyond 30 days
- Not sending via Registered Post AD
2Document Checklist
Required Documents
0 of 4 ready
Why Applications Get Rejected
Time Barred
Filing complaint after the 30-day limitation period expires.
Debt Not Legally Enforceable
Cheque given for illegal purposes or gift.
3Appointment & Visit
Send Notice
Lawyer sends notice giving 15 days to pay.
File Complaint
File case in Magistrate Court.
Summons
Court issues summons to the accused.
Trial
Evidence recording and arguments.
Common Questions
Q. Can the person be jailed?
Yes, up to 2 years imprisonment or fine up to twice the cheque amount.
Q. Can I file it anywhere?
You must file it in the court having jurisdiction over the bank branch where you (payee) presented the cheque.
Q. Is mediation possible?
Yes, courts encourage settlement in 138 cases.