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Cheque Bounce Complaint Guide

When a cheque is dishonoured, Section 138 of the Negotiable Instruments Act gives you a strict, unforgiving timeline to act on. Miss a deadline and you lose the right to prosecute. Here's exactly what happens, when.

Section 138, NI Act 1881 Criminal complaint Compoundable offence

The statutory clock

0

Day 0

Cheque is dishonoured

Bank returns the cheque unpaid (insufficient funds, signature mismatch, etc.) with a memo. Keep this memo — it's the foundation of the whole case.

30

Within 30 days of the return memo

Send a legal demand notice

In writing, to the drawer, demanding payment of the cheque amount. This is mandatory — no notice, no valid complaint. See the checklist below for what it must contain.

15

15 days after the drawer receives the notice

Payment grace period

The drawer has exactly 15 days from receiving the notice to pay. The right to prosecute only arises if this window passes with no payment.

30

Within 30 days after the grace period ends

File the complaint

Before a Magistrate having jurisdiction where the cheque was presented for payment through the payee's bank (s.142(2), amended 2015). Delay can sometimes be condoned by the court, but don't count on it.

Estimate the complaint filing fee

Filing fees for a Section 138 complaint are set by each state's own Court Fees Act, not the central NI Act — so they vary. Verified data is available for the states below; more are added as they're verified.

What the legal notice must contain

  • The exact cheque amount demanded as payment — not a rounded or approximate figure.
  • Cheque details — number, date, drawee bank, and the date of the dishonour memo.
  • A clear demand for payment within 15 days of receipt of the notice.
  • Sent within 30 days of receiving the bank's return memo — sending it late invalidates the whole case.
  • Sent by a method that creates a proof of delivery — registered post or speed post with acknowledgment is standard practice.

Good to know

  • Section 138 is a criminal offence but also a compoundable one — most cases settle once the drawer realises prosecution is real, since the penalty can include imprisonment up to 2 years and/or a fine up to twice the cheque amount.
  • You can send multiple notices if the cheque is re-presented and dishonoured again, but each fresh presentation + notice + grace period restarts its own clock — only the most recent cycle before filing typically matters.
  • The complaint must be filed by the payee (or holder in due course) — not by someone else on their behalf without proper authorisation.
  • A separate civil recovery suit for the same amount is also available and can run in parallel with the criminal complaint.
Informational guide, not legal advice. Timelines are computed from the statutory text of Section 138/142, Negotiable Instruments Act 1881 (as amended 2015, jurisdiction provision) and apply uniformly across India. State-wise filing fees are verified individually against each state's Court Fees Act — see the source note in the fee result for the exact citation. Consult an advocate for your specific matter.