How to File a Cheque Bounce Case: 7 Proven Steps
Unsure how to file a cheque bounce case in India? This guide explains how to file a cheque bounce case in India step-by-step, supporting document, and courtroom milestone so you can act swiftly, remain fully compliant, and maximise your chances of recovery. Backed by the litigation team at Prashastha Legal, it breaks down the legal jargon of Section 138 of the Negotiable Instruments Act into everyday language, explains why each step matters, and equips both individuals and businesses with practical checklists, timelines, and risk‑saving tips before they set foot in court. Follow along to avoid missed deadlines and costly procedural errors.
Legal Foundation: Why a Bounced Cheque Is a Criminal Matter
Dishonour triggers Section 138 NI Act and shifts the burden to the drawer.
When a cheque is returned unpaid, the law presumes an enforceable debt. Conviction can mean jail for up to two years or a fine double the cheque amount.
Statutory Time Limits When You File a Cheque Bounce Case
Deadlines decide admissibility.
- 30 days – send statutory notice after the bank’s return memo.
- 15 days – wait for the drawer to pay.
- 30 days – file the complaint if payment is still due.
Follow these actions to learn how to file a cheque bounce case correctly:
Use this practical roadmap to move from dishonour to judgment while meeting every statutory deadline. Follow the numbered actions below to complete each procedural requirement with confidence.
Step 1 – Confirm Dishonour & Collect the Bank Return Memo
Collect the bank‑issued cheque‑return memo that specifies the precise reason for dishonour; this document triggers the statutory timeline and forms indispensable primary evidence for any subsequent legal action.
Step 2 – Draft the Statutory Demand Notice
Draft a clear notice citing cheque number, amount, date, and firmly demand payment within 15 days, expressly cautioning that criminal proceedings will follow if the drawer fails to comply.
Step 3 – Serve the Notice & Keep Proof of Delivery
Dispatch the notice via registered post or reputable courier, then securely archive the tracking receipt or acknowledgement card because demonstrable proof of delivery is vital for statutory compliance.
Step 4 – Wait 15 Days for Voluntary Payment
Respect the mandatory 15‑day grace period, giving the drawer one final opportunity to settle; prematurely filing the complaint can lead the magistrate to dismiss it as procedurally invalid.
Step 5 – Compile the Required Documents
Assemble a neat dossier containing the original cheque, return memo, statutory notice with delivery proof, supporting bank statement, underlying agreement or invoice, and your valid identification documents.
Step 6 – File the Criminal Complaint Within the Next 30 Days
Prepare a sworn affidavit reciting the chronology, annex all supporting exhibits, affix requisite court‑fee stamps, and lodge the complaint in the magistrate court having territorial jurisdiction over your deposit branch.
Step 7 – Attend Court Hearings Until Judgment or Settlement
Attend every summons date, adopt your evidence‑in‑chief through affidavit, withstand cross‑examination confidently, and consider negotiating compounding to secure swift compensation while avoiding prolonged litigation.
Common Defences Drawers Raise
Prepare counter‑arguments before walking into court.
- Cheque issued as security only
- No legally enforceable debt
- Signature disputed
- Courts test these claims against the presumption of liability.
Alternate & Parallel Remedies
Civil suits and arbitration remain available if you miss criminal deadlines.
If the criminal window closes, you can still:
- File a civil money‑recovery or summary suit within three years from the cheque date; courts may grant a decree with interest.
- Invoke arbitration if your contract contains an arbitration clause, bypassing the backlog of civil courts.
- Send a fresh statutory notice when a new cheque for the same liability is issued, restarting the Section 138 timeline.
- Pursue mediation or Lok Adalat for faster, low‑cost settlement, often encouraged by courts in cheque matters.
Recent Judicial Trends & Digital Evidence Issues
E‑cheque dishonour and Section 65‑B certification now centre‑stage.
- Supreme Court encourages compounding at any stage to unclog dockets, typically upon payment of the cheque amount plus 15 % additional compensation.
- High Courts insist that delay in filing complaints be condoned only on “sufficient cause,” tightening procedural discipline.
- RBI’s cheque truncation system means scanned images are primary evidence; banks provide 65‑B certificates to prove authenticity.
- Courts now accept SMS or email alerts as corroborative proof of dishonour when produced along with telecom or banking logs.
Business‑Side Risk Management Tips
Practical steps to avoid being either plaintiff or accused.
- Reconcile balances before issuing cheques and set automated low‑balance alerts.
- Prefer account‑payee‑only instruments for traceability.
- Insert penal interest clauses in contracts to deter late payments.
- Keep signed delivery notes or e‑way bills to prove that goods or services were supplied.
- Use post‑dated cheques only after vetting the payer’s creditworthiness.
- Digitise documents and maintain a Section 65‑B compliant electronic archive.
Frequently Asked Questions
Fast answers to recurring client doubts.
Can I prosecute if I lost the original cheque?
Criminal action requires the original cheque or a bank‑certified copy; otherwise, file a civil suit for recovery.
Does part‑payment after notice stop the case?
No. Only full payment of the cheque amount plus agreed costs allows compounding and withdrawal before the court.
Where do I file if the drawer lives elsewhere?
File in the court whose jurisdiction covers the bank branch where you presented the cheque; this applies even if the drawer’s bank is in another state.
Conclusion: Act Fast, Document Well
Knowing how to file a cheque bounce case is only half the battle; acting fast is the other half. By respecting statutory deadlines and following each step above, you maximise recovery chances and minimise procedural setbacks.
Disclaimer: This article provides general information and is not legal advice. Consult a qualified Criminal advocate for guidance on specific facts.
