A cheque bounce dispute may involve strict statutory requirements concerning presentation of the cheque, the bank return memo, demand notice, service of notice, payment period, territorial jurisdiction and filing of the complaint. Section 138 of the Negotiable Instruments Act, 1881 provides a legal framework for specified cases in which a cheque issued towards discharge of a legally enforceable debt or liability is returned unpaid and the statutory requirements are fulfilled. A Cheque Bounce Lawyer can assist in reviewing the cheque and bank return memo, calculating relevant dates, preparing or responding to a statutory notice, identifying court jurisdiction, preparing the complaint or defence and assisting during proceedings before the competent court. Taps9 Law provides legal assistance relating to cheque dishonour and Section 138 proceedings, subject to the facts, jurisdiction and applicable law in each matter.

What Is a Cheque Bounce Case Under Section 138?

Section 138 of the Negotiable Instruments Act deals with dishonour of a cheque in the circumstances specified by the provision. Broadly, the provision concerns a cheque drawn by a person on an account maintained by that person for payment of money towards discharge, wholly or partly, of a legally enforceable debt or other liability, where the cheque is returned unpaid for the reasons covered by the statutory framework. However, every cheque return should not automatically be described as a completed Section 138 offence. The statutory sequence and dates must first be examined.

Essential Requirements of a Section 138 Cheque Bounce Case

A Section 138 matter involves several connected statutory requirements.

Cheque Issued Towards a Legally Enforceable Debt or Liability

The cheque should relate to discharge, wholly or partly, of a legally enforceable debt or other liability for the requirements of Section 138 to apply. The underlying transaction can therefore become important in a disputed matter.

Presentation of the Cheque Within Its Validity Period

The cheque must be presented while it remains valid. Although older statutory wording and many old online articles refer to a six-month period, Reserve Bank of India directions provide that banks should not make payment of cheques presented beyond three months from the date of the instrument. Therefore, website content should not advise a person that a cheque can currently be presented for payment at any time during six months.

Cheque Returned Unpaid

If the cheque is returned unpaid, the bank normally issues a cheque return memo recording the reason for return. The exact reason stated in the return memo should be reviewed rather than relying on a general description such as “cheque bounced”.

Written Demand Notice

Section 138 requires the payee or holder in due course to make a demand for payment through a written notice within the applicable statutory period after receiving information from the bank regarding dishonour.

Opportunity to Make Payment

After receipt of the statutory demand notice, the drawer is given the period prescribed by Section 138 to make payment. The dates of receipt or legally relevant service of the notice can therefore be important.

Filing the Complaint Within Limitation

If the statutory requirements are satisfied and payment is not made within the applicable period, a complaint may be filed before the competent court within the limitation prescribed by Section 142.

Cheque Bounce Legal Notice Under Section 138

The statutory demand notice is an important stage in a Section 138 proceeding. It should be prepared from the actual cheque, bank return memo, transaction and dates rather than from a generic internet template.

When Should the Notice Be Sent?

Section 138 provides that the written demand notice is to be issued within thirty days from receipt of information from the bank regarding return of the cheque as unpaid.

What Should the Notice Identify?

Depending on the circumstances, the notice should accurately identify matters such as:

• the parties;
• cheque number;
• cheque date;
• cheque amount;
• relevant bank details;
• date of dishonour;
• bank return memo;
• underlying transaction or liability;
• and demand for payment as required by law.

Why Proof of Notice Is Important

Dispatch and service-related records can become important during proceedings. Depending on the mode used, relevant records may include postal receipts, tracking information, acknowledgements and other legally relevant proof.

What Happens After the Section 138 Notice?

Receipt of a legal notice does not by itself mean that a conviction has occurred. The statutory process gives the drawer an opportunity to make the demanded payment within the period prescribed by law.

Payment Within the Statutory Period

Section 138 provides a fifteen-day period after receipt of the statutory notice for payment of the cheque amount.

No Payment Within the Applicable Period

Where payment is not made and the other statutory requirements are satisfied, cause of action for filing the complaint may arise according to the Act.

Complaint Under Section 142

Section 142 contains requirements concerning cognizance and filing of complaints for offences under Section 138. The complaint is generally required to be made within one month from the date on which the cause of action arises under the relevant provision, subject to the statutory power concerning sufficient cause for delay.

Cheque Bounce Timeline – Simple Overview

A typical Section 138 chronology may broadly be understood as follows:

1. Cheque is issued towards an alleged legally enforceable debt or liability.
2. Cheque is presented within its current validity period.
3. Bank returns the cheque unpaid.
4. Payee receives information concerning dishonour.
5. Written demand notice is issued within the statutory period.
6. Drawer receives or is legally served with the notice.
7. Statutory period for making payment runs.
8. If payment is not made and requirements are satisfied, cause of action arises.
9. Complaint is filed before the court having jurisdiction within the applicable limitation period.

Exact dates should always be calculated from the actual bank memo, notice and service records.

Which Court Has Jurisdiction in a Cheque Bounce Case?

Territorial jurisdiction in a Section 138 matter should not be assumed merely from the residence or office address of either party. Section 142(2) contains specific rules governing the court having territorial jurisdiction.

Cheque Deposited Through the Payee’s Bank Account

Where the cheque is delivered for collection through an account, Section 142(2) links jurisdiction to the branch of the bank where the payee or holder in due course maintains the relevant account, subject to the statutory framework.

Cheque Presented Otherwise Than Through an Account

Where the cheque is presented for payment otherwise than through an account, Section 142(2) contains a separate rule linked to the branch of the drawee bank where the drawer maintains the account.

Why Jurisdiction Must Be Checked Before Filing

Filing a complaint in the wrong court can create unnecessary procedural problems. The mode of cheque presentation, bank branches and transaction records should therefore be examined before determining the court.

Who Can File a Section 138 Complaint?

Section 142 provides that cognizance of a Section 138 offence is based on a written complaint by the payee or, as the case may be, holder in due course of the cheque. Where a company, partnership or authorised representative is involved, authority and supporting documentation should be reviewed carefully.

Cheque Bounce Cases Involving Companies

Section 141 of the Negotiable Instruments Act contains provisions concerning offences by companies. Liability should not automatically be attributed to every director, employee or officer merely because that person’s name appears in company records. The person’s role, responsibility for conduct of the company’s business, statutory requirements and allegations made in the complaint require examination.

Presumption Under Section 139 of the Negotiable Instruments Act

Section 139 contains a statutory presumption in favour of the holder concerning receipt of the cheque for discharge, wholly or partly, of a debt or other liability, unless the contrary is proved. This presumption is legally significant, but it should not be explained online as though the complainant automatically wins every Section 138 case. The accused may raise legally available defences and the court evaluates the evidence and applicable legal principles.

Bank Return Memo and Evidence of Dishonour

The cheque return memo is an important document in a cheque dishonour proceeding. Section 146 of the Negotiable Instruments Act provides a statutory evidentiary rule relating to a bank slip or memo bearing the official mark denoting dishonour, subject to the provision.

Interim Compensation Under Section 143A

Section 143A permits the court trying a Section 138 offence to order interim compensation in the circumstances specified by that section. The amount of interim compensation under the provision cannot exceed twenty per cent of the cheque amount. It should not be represented to a client as an automatic payment that will be ordered in every complaint.

Appeal After Conviction and Section 148

Section 148 deals with the power of an Appellate Court concerning deposit during an appeal by a drawer against conviction under Section 138. The provision states that the appellate court may order deposit of an amount which shall be at least twenty per cent of the fine or compensation awarded by the trial court, subject to the statutory framework. Appellate proceedings should be assessed from the actual conviction order, sentence and procedural history.

Can a Cheque Bounce Case Be Settled?

Section 147 of the Negotiable Instruments Act provides that offences punishable under the Act are compoundable. Settlement may therefore be possible in an appropriate case. However, the settlement should clearly address payment terms, pending proceedings, withdrawal or compounding procedure and other relevant obligations.

Settlement Before Filing a Complaint

Parties may resolve the payment dispute before a complaint becomes necessary if settlement is genuinely reached and implemented.

Settlement During Court Proceedings

Settlement may also arise after court proceedings have begun. The appropriate steps should be taken before the court so that the legal proceeding is formally dealt with rather than assuming that a private payment automatically closes the pending case.

Documents Commonly Required for a Cheque Bounce Case

A Cheque Bounce Lawyer may need to review documents including:

• original cheque or appropriate cheque record;
• bank return memo;
• statutory demand notice;
• postal or courier receipt;
• tracking and service records;
• bank account statement where relevant;
• invoice or bill;
• loan agreement;
• purchase order;
• ledger or account statement;
• acknowledgement of debt where applicable;
• contract or agreement;
• correspondence relating to the transaction;
• company authorisation documents where relevant;
• previous court orders;
• and documents directly connected with the alleged liability.

The required evidence depends on the underlying transaction and disputed issues.

Cheque Bounce Case From the Complainant’s Perspective

A person proposing to file a Section 138 complaint should first organise the complete chronology.

Check the Cheque and Return Memo

Confirm the cheque date, amount, bank, presentation date and reason for dishonour.

Calculate the Notice Deadline

Calculate the statutory notice period from receipt of the bank’s dishonour information.

Preserve Proof of Dispatch and Service

Keep postal, courier and tracking records safely.

Calculate Cause of Action and Complaint Limitation

The payment period after service of the notice and subsequent complaint deadline should be calculated accurately.

Cheque Bounce Case From the Accused or Drawer’s Perspective

Receipt of a Section 138 legal notice or summons should not be ignored. The drawer should preserve the notice, envelope, cheque-related records, transaction documents and court papers and obtain legal advice based on the actual allegations.

Review the Alleged Debt or Liability

The underlying transaction and the allegation of legally enforceable liability should be examined.

Review Statutory Timelines

Relevant dates concerning cheque presentation, dishonour, notice, service and complaint filing should be checked.

Review Jurisdiction

The court in which the complaint has been filed should be examined against Section 142(2) and the banking facts.

Attend Court Proceedings

Court summons and directions should be taken seriously. The accused should obtain advice regarding appearance, bail or bond requirements, plea, evidence and other procedural steps applicable to the matter.

Cheque Bounce Lawyer

Taps9 Law receives enquiries relating to cheque bounce and Section 138 proceedings connected with Kolkata. Whether a Kolkata court has territorial jurisdiction should be determined according to Section 142(2), the manner in which the cheque was presented and the relevant bank branch information. Kolkata should therefore not be added to a complaint merely because one party prefers to litigate there.

Cheque Bounce Lawyer for Bankshall Court

Cheque bounce cases falling within the appropriate jurisdiction may be heard before Metropolitan Magistrates’ Courts in Kolkata, including matters associated with the Bankshall Street court complex where jurisdictional requirements are satisfied. Bankshall Court is a particularly important search location for clients dealing with Magistrates’ Court proceedings in central Kolkata.

Bankshall Court Cheque Bounce Search Terms

• Cheque Bounce Lawyer in Bankshall Court, Calcutta
• Cheque Bounce Lawyer in Calcutta Magistrates Court
• Section 138 Lawyer in Bankshall Court
• Cheque Bounce Case Lawyer in Kolkata
• NI Act Lawyer in Bankshall Court

For more specific court-related information, see our Bankshall Court and Metropolitan Magistrates Court Kolkata page.

Cheque Bounce Lawyer in Delhi

Section 138 matters connected with Delhi must also satisfy the territorial jurisdiction rules contained in the Negotiable Instruments Act. Before filing or responding to proceedings, the bank branch information, presentation method and complaint documents should be reviewed.

Cheque Bounce Legal Assistance in Greater Noida

Taps9 Law may receive cheque dishonour enquiries from Greater Noida and nearby areas. However, the client’s present residence alone does not establish the court having jurisdiction over a Section 138 complaint. Banking and cheque-presentation details should first be examined.

Cheque Bounce Enquiries From Pune and Bengaluru

Clients may seek legal guidance from different parts of India, including Pune and Bengaluru. The website should distinguish between providing legal assistance to a client from a particular city and claiming to operate a physical office there. Territorial jurisdiction for the Section 138 proceeding remains governed by the statutory rules and actual banking facts.

Cheque Bounce Cases and the Supreme Court

A Section 138 matter may pass through different levels of the judicial process. Where an eligible High Court judgment or order is proposed to be challenged before the Supreme Court, the appropriate remedy may need separate assessment. For further information about Article 136 proceedings, read our Special Leave Petition Lawyer in Supreme Court of India guide.

How Can a Cheque Bounce Lawyer Assist?

Depending on the matter, a Cheque Bounce Lawyer may assist with:

• reviewing the cheque and bank return memo;
• reviewing the underlying debt or transaction;
• calculating statutory timelines;
• preparing a Section 138 demand notice;
• responding to a cheque bounce notice;
• checking territorial jurisdiction;
• preparing a Section 138 complaint;
• reviewing summons and court papers;
• representing complainants or accused persons;
• reviewing documentary evidence;
• assisting with settlement or compounding where appropriate;
• assisting with appeal-related proceedings;
• and advising on connected legal remedies.

The legal approach should be based on the actual transaction and documents rather than a standard cheque bounce template.

What Information Should You Provide to a Cheque Bounce Lawyer?

For an initial review, it is helpful to provide:

• cheque date;
• cheque amount;
• cheque number;
• date of presentation;
• date of bank return memo;
• reason for dishonour;
• date on which dishonour information was received;
• date of legal notice, if already issued;
• notice delivery or tracking details;
• details of any payment made;
• underlying invoice, agreement or transaction;
• court and case number, if proceedings have started;
• and latest court order where available.

Exact dates are particularly important in Section 138 matters.

Related Legal Services and Resources

These related pages explain legal remedies that may arise alongside or separately from a cheque dishonour dispute.

Bankshall Court and Metropolitan Magistrates Court Kolkata

Read location-specific information relating to Magistrates’ Court proceedings in Kolkata and Bankshall Street.

Legal Notice Services

Understand the broader role of legal notices. A statutory Section 138 notice must still comply with the requirements applicable to cheque dishonour matters.

Bail Lawyer in Kolkata, Delhi & India

Read information relating to bail and criminal court procedure where a separate criminal-law issue requires assistance.

Special Leave Petition Lawyer in Supreme Court of India

Understand the separate Article 136 remedy available in appropriate Supreme Court matters.

About Taps9 Law

Learn more about the Law Office of Tapan Choudhury and its areas of legal practice.

Frequently Asked Questions About Cheque Bounce Cases

What is a cheque bounce case?

A cheque bounce case under Section 138 concerns specified circumstances in which a cheque issued towards discharge of a legally enforceable debt or liability is returned unpaid and the statutory notice and filing requirements are fulfilled.

Does every bounced cheque result in a Section 138 case?

No. The statutory requirements must be satisfied. The cheque, underlying liability, dishonour, notice, payment period and limitation should all be examined.

How long is a cheque currently valid in India?

RBI directions provide that banks should not make payment of cheques presented beyond three months from the date of the instrument.

How much time is available to send a cheque bounce legal notice?

Section 138 provides for written demand notice within thirty days from receipt of information from the bank regarding return of the cheque as unpaid.

How much time does the drawer get after receiving the notice?

The provision gives the drawer fifteen days after receipt of the statutory notice to make payment of the cheque amount.

When can a Section 138 complaint be filed?

Where the statutory requirements are fulfilled and payment is not made during the applicable period after receipt of notice, cause of action may arise for filing the complaint according to Sections 138 and 142.

How long is available to file the complaint?

Section 142 generally requires the complaint within one month from the date on which the cause of action under Section 138 arises, subject to the statutory provision concerning sufficient cause for delay.

Where should a cheque bounce case be filed?

Territorial jurisdiction is governed by Section 142(2) and depends particularly on how the cheque was presented and the relevant bank branches. It should not be determined solely from the residence of one party.

Can a cheque bounce case be settled?

Yes. Section 147 provides for compounding of offences under the Negotiable Instruments Act, subject to the appropriate legal procedure.

Can the court order interim compensation?

Section 143A permits interim compensation in the circumstances specified by that provision, up to twenty per cent of the cheque amount.

Is interim compensation automatic?

It should not be represented as automatically payable in every Section 138 case. The provision states that the court may order interim compensation in the circumstances set out in Section 143A.

What happens if a person is convicted and files an appeal?

Section 148 contains provisions concerning the Appellate Court’s power to order deposit during an appeal against conviction under Section 138.

Can a cheque bounce case be filed in Bankshall Court?

A Section 138 complaint may proceed before the appropriate Metropolitan Magistrates’ Court in Kolkata where the statutory territorial jurisdiction requirements are satisfied. The banking details and mode of cheque presentation should be checked before deciding the court.

Can a company be accused in a cheque bounce case?

Section 141 contains provisions concerning offences by companies. Liability of the company and persons connected with it should be assessed according to the statutory requirements and allegations.

Can I ignore a cheque bounce legal notice?

A statutory notice should not be ignored. The cheque, transaction, notice, deadlines and available legal response should be reviewed promptly.

Speak With Taps9 Law About a Cheque Bounce Matter

If you have received a dishonoured cheque, a Section 138 notice, court summons or a complaint, keep the complete documents and dates available for initial review. If you are proposing to initiate proceedings, keep the cheque, bank return memo, transaction documents and relevant communication organised before consultation. Law Office of Tapan Choudhury Phone: +91 98736 28941 Information on this page is intended for general legal awareness. Maintainability, limitation, territorial jurisdiction, defence and outcome depend on the documents and circumstances of each individual matter.

Legal Review

Legally Reviewed by Advocate Tapan Choudhury

Professional Details

• State Bar Council:
• Enrolment Number:
• Year of Enrolment:
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• Negotiable Instruments Act Practice:
• Last Legal Review: September 2026

Official Legal References

Negotiable Instruments Act, 1881

Chapter XVII contains the principal statutory provisions concerning dishonour of specified cheques and connected proceedings.

Section 138 – Dishonour of Cheque

Contains the principal statutory framework concerning specified cheque dishonour, notice and payment requirements.

Section 139 – Presumption in Favour of Holder

Contains the statutory presumption applicable to the holder, subject to the law governing rebuttal.

Section 141 – Offences by Companies

Contains provisions relating to offences involving companies and persons responsible for conduct of their business in the circumstances specified by the Act.

Section 142 – Cognizance and Territorial Jurisdiction

Contains requirements relating to written complaints, limitation and the court having territorial jurisdiction.

Section 143A – Interim Compensation

Permits interim compensation in circumstances specified by the provision, subject to a maximum of twenty per cent of the cheque amount.

Section 146 – Bank Memo

Contains the statutory evidentiary provision relating to bank slips or memos denoting dishonour.

Section 147 – Compounding

Provides that offences punishable under the Negotiable Instruments Act are compoundable.

Section 148 – Deposit During Appeal Against Conviction

Contains provisions concerning deposit that may be ordered by the Appellate Court during an appeal by the drawer against conviction under Section 138.

Reserve Bank of India – Cheque Validity

RBI directions provide that banks should not make payment of cheques, drafts, pay orders or banker’s cheques presented beyond three months from the date of the instrument.