Cheque Bounce Case Lawyers in Chennai | Section 138 NI Act
Negotiable Instruments Act · Section 138

Cheque bounce cases: the deadlines decide the case before the merits do

A Section 138 complaint is one of the most deadline-driven proceedings in Indian law. Miss the notice window by a day and the case is gone. We act for payees enforcing dishonoured cheques and for drawers defending them.

Quick answer

On dishonour, the payee must issue a written demand within 30 days of the bank memo. If the amount is not paid within 15 days, a complaint may be filed within the next one month.

Those three periods are strict. The single most common reason a good claim fails is a notice sent late.

The three deadlines

A Section 138 prosecution only becomes available if the sequence is followed exactly.

30 days to send notice. Counted from the date you receive the bank’s dishonour memo, a written demand for the cheque amount must be sent to the drawer.15 days to pay. From the drawer’s receipt of the notice. The offence is complete only when this period expires without payment.One month to file. The complaint must be filed within one month of the expiry of that 15-day period, before the competent Magistrate.
A fresh presentation gives a fresh cause of action. If the notice window has been missed, re-presenting the cheque within its validity and starting again is often the cleanest fix: provided the cheque is still valid.

Which court, and what the complaint must prove

Jurisdiction ordinarily lies where the payee’s bank branch is situated, which for Chennai payees usually means a Chennai Magistrate. The complaint must establish a legally enforceable debt, issue of the cheque towards that debt, dishonour, notice, and non-payment.

The statutory presumption works in the payee’s favour: once issue and signature are admitted, the law presumes the cheque was for a debt. The burden then shifts to the drawer to rebut it.

Defending a Section 138 complaint

Defences that work are factual and evidenced: that the cheque was given as security and not for a debt, that no legally enforceable liability existed, that the signature is not the drawer’s, that the notice was never served, or that the amount was in fact paid.

Defences that rarely work include a bare denial or an assertion of financial difficulty. Where the debt is genuine, the more productive conversation is usually about settling, because a compounded settlement ends the prosecution and avoids a conviction.

FAQs

Cheque bounce: the questions that matter

What is the punishment for a cheque bounce conviction?+

Imprisonment which may extend to two years, or a fine which may extend to twice the cheque amount, or both. Courts frequently order compensation to the complainant in place of, or alongside, a sentence.

Can a cheque bounce case be settled after filing?+

Yes. The offence is compoundable, and courts actively encourage settlement, often through mediation or Lok Adalat. A recorded settlement with payment brings the case to an end.

Can I also file a civil suit to recover the money?+

Yes. A Section 138 prosecution is a criminal remedy; a summary suit to recover the amount is a separate civil remedy, and both can be pursued. Whether both are worth the cost depends on the sum involved.

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