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A cheque bounce case in Delhi is filed under Section 138 of the Negotiable Instruments Act, 1881 when a cheque given for a debt is returned unpaid. The payee must send a legal notice within 30 days of the bank’s return memo, give the drawer 15 days to pay, and then file a criminal complaint within one month. Miss any of these dates and the case can fail, so the timeline matters as much as the facts.
Key takeaways
- Present the cheque within its three-month validity.
- Send the legal notice within 30 days of receiving the return memo from the bank.
- If the drawer does not pay within 15 days of receiving the notice, file the complaint within the next one month.
- The offence is punishable with up to two years’ imprisonment, a fine of up to twice the cheque amount, or both.
- Since the Supreme Court’s September 2025 guidelines, the accused can pay the cheque amount at the start of the case without any extra cost.
In this guide
When does a bounced cheque become an offence?
Not every returned cheque is a crime. Section 138 applies only when all of these conditions are met:
- The cheque was issued to pay a legally enforceable debt or liability (not a gift or donation).
- It was presented to the bank within its validity period.
- It was returned for insufficient funds or because it exceeded the arrangement with the bank. Courts have also treated reasons like “account closed” or “payment stopped by drawer” as covered where funds were not available.
- The payee sent a written demand notice within 30 days of learning about the dishonour.
- The drawer failed to pay within 15 days of receiving the notice.
Once the cheque and signature are admitted, the court presumes under Section 139 that it was issued for a debt. The accused must then prove otherwise. In Sripati Singh v. State of Jharkhand (2021), the Supreme Court held that even a “security” cheque can attract Section 138 if the debt had become due when the cheque was presented.
Cheque bounce timeline: the dates that matter
| Step | Time limit | Law |
|---|---|---|
| Present the cheque | Within 3 months of the date on the cheque | S. 138, proviso (a), with RBI validity rules |
| Send legal notice | Within 30 days of receiving the return memo | S. 138, proviso (b) |
| Drawer’s time to pay | 15 days from receipt of the notice | S. 138, proviso (c) |
| File the complaint | Within 1 month after the 15 days expire | S. 142(1)(b) |
| Late complaint | Court may condone delay if sufficient cause is shown | S. 142(1)(b), proviso |
You can present the cheque more than once within its validity. The 30-day notice period starts from the return memo of the presentation you choose to act on.
The legal notice: getting it right
The demand notice is the foundation of the case. A defective notice is one of the most common reasons complaints fail. A good notice should:
- Identify the cheque clearly: number, date, amount, bank and the return memo date and reason.
- Demand payment of the cheque amount. Adding other sums such as interest is risky unless they are shown separately and clearly.
- Give the drawer 15 days from receipt to pay.
- Be sent to the correct address — ideally by speed post and courier, with tracking, and by email or WhatsApp where the drawer has used them.
Keep the postal receipts, tracking reports and any returned envelope. If the notice comes back “refused” or “not claimed” at the correct address, courts usually treat it as served.
Cheque bounce case procedure: step by step
- Collect the documents — original cheque, return memo, copy of notice and proof of dispatch and delivery.
- File the complaint in the competent court within time, with an affidavit of evidence (Section 145 allows evidence on affidavit) and the synopsis format directed by the Supreme Court in 2025.
- Pre-summoning stage. The magistrate examines the complaint and affidavit and, if satisfied, issues summons to the accused.
- Service of summons. Summons are sent through the usual modes, served by hand (dasti) through the complainant, and sent electronically by email or WhatsApp to contact details the complainant verifies on affidavit. The summons tells the accused that they may pay the cheque amount at the initial stage.
- Appearance and notice of accusation. The accused appears, can seek bail if required, and is told the substance of the accusation. The accused either admits the offence or states the defence.
- Interim compensation. Under Section 143A, the court may order the accused to pay up to 20% of the cheque amount as interim compensation.
- Evidence and trial. Cases under Section 138 are tried summarily. The complainant’s evidence is mostly by affidavit, followed by cross-examination and the accused’s defence evidence.
- Judgment. The court convicts or acquits. On conviction, it can order compensation to the complainant.
Where to file a cheque bounce case in Delhi
Under Section 142(2), the complaint is filed where the payee’s bank branch is located — the branch where the cheque was deposited for collection. If that branch is in Delhi, the case is filed in the Delhi district court with jurisdiction over that area, before the court dealing with NI Act cases.
Delhi’s district courts, including Rohini Courts, have dedicated courts for Negotiable Instruments Act matters, and many complaints are now filed and heard with electronic support. Case status can be checked on the Delhi District Courts website.
Documents required for a cheque bounce case
| Document | Purpose |
|---|---|
| Original dishonoured cheque | Primary evidence of the instrument |
| Bank return memo | Proves dishonour and the reason |
| Copy of legal notice | Proves the statutory demand |
| Postal receipts, tracking report, returned envelope | Proves sending and delivery of notice |
| Proof of debt (loan agreement, invoices, ledger, bank transfers, chats) | Shows a legally enforceable liability |
| Board resolution or authority letter | Needed if the complainant is a company or firm |
| Affidavit of evidence and synopsis | Required at the time of filing |
Punishment, compensation and appeal
- Punishment: imprisonment up to two years, or a fine up to twice the cheque amount, or both (Section 138).
- Interim compensation: up to 20% of the cheque amount during trial (Section 143A).
- Appeal: an accused who appeals against conviction can be directed to deposit at least 20% of the fine or compensation (Section 148).
- Company cases: where a company issued the cheque, the company must be made an accused, along with the directors in charge of its business (Section 141). The Supreme Court settled this in Aneeta Hada v. Godfather Travels & Tours (2012).
Settling a cheque bounce case
The offence is compoundable under Section 147, so the parties can settle at any stage. In Sanjabij Tari v. Kishore S. Borcar (September 2025), the Supreme Court issued guidelines to encourage early settlement:
| Stage of settlement | Extra cost payable |
|---|---|
| At the initial stage, on receiving summons | None |
| Before the accused’s defence evidence is recorded | None |
| After defence evidence, before judgment | 5% of the cheque amount |
| In appeal or revision before the Sessions Court or High Court | 7.5% of the cheque amount |
| Before the Supreme Court | 10% of the cheque amount |
In Delhi, many matters are also referred to mediation or the Lok Adalat, where settlements can be recorded quickly.
If you have received a cheque bounce notice
If you are the drawer, the 15-day window after the notice is your best chance to avoid a criminal case. You can:
- Pay the cheque amount within 15 days and keep proof of payment.
- Send a reply through an advocate if the debt is disputed, already paid, or the cheque was misused.
- If summons have been issued, appear on the date given. Consider paying at the initial stage, which now carries no extra cost.
- Keep records of every payment, message and agreement with the complainant.
Common mistakes in cheque bounce cases
- Missing the 30-day notice deadline — the most common and costly error.
- Demanding a different amount in the notice from the cheque amount.
- Filing in the wrong court instead of where the payee’s bank branch is.
- Not naming the company when the cheque was issued by a company.
- No proof of debt — the presumption helps, but supporting documents make the case stronger.
Frequently asked questions
What is the time limit to file a cheque bounce case?
Send the legal notice within 30 days of the return memo. If the drawer does not pay within 15 days of receiving it, file the complaint within one month after those 15 days end. The court can accept a late complaint only if you show sufficient cause for the delay.
What is the punishment for cheque bounce in India?
Under Section 138 of the Negotiable Instruments Act, the court can impose imprisonment of up to two years, a fine of up to twice the cheque amount, or both. The court can also order interim compensation of up to 20% of the cheque amount while the case is pending.
Can a cheque bounce case be settled?
Yes. The offence is compoundable under Section 147, so the parties can settle at any stage. Under the Supreme Court’s 2025 guidelines, there is no extra cost before defence evidence is recorded, while settlements at later stages carry costs from 5% to 10% of the cheque amount.
Where do I file a cheque bounce case in Delhi?
File where your bank branch is located — the branch where you deposited the cheque. If that branch is in Delhi, the complaint goes to the NI Act court of the Delhi district that covers that area. The accused’s address does not decide the court.
Is a security cheque covered under Section 138?
It can be. In Sripati Singh v. State of Jharkhand (2021), the Supreme Court held that a cheque given as security can attract Section 138 if the debt was legally due when the cheque was presented and it was dishonoured. Each case depends on the agreement and the facts.
Do I need to be present at every hearing?
The complainant usually needs to attend when giving evidence and for cross-examination; an advocate can represent them on other dates. The accused must appear when summoned and whenever the court directs, though exemption from personal appearance can be sought on suitable grounds.
This guide was prepared with reference to Sections 138 to 148 of the Negotiable Instruments Act, 1881 and the Supreme Court’s judgment in Sanjabij Tari v. Kishore S. Borcar (2025). Check the current practice of the court concerned before filing.
Related guides and services
- Cheque Bounce Lawyer in Delhi
- Money Recovery Lawyer in Delhi
- How to file a civil suit in Delhi District Courts
- Criminal Lawyer at Rohini Court
- Commercial Dispute Lawyer in Delhi
Written and reviewed by Advocate Shubham Mehta
Advocate, Bar Council of Delhi (Enrl. No. D/6398/2021), and head of SRLM Law Associates. He practises before Rohini Courts, other Delhi District Courts, Family Courts, consumer commissions and the Delhi High Court. More about the firm
Speak to SRLM Law Associates
For advice specific to your situation, you may consult a qualified advocate. Advocate Shubham Mehta and the SRLM Law Associates team can be reached at +91 99997 91419 or info@srlmlaw.com. Chamber: 1310, Lawyer’s Chamber Block, Rohini Courts, Delhi – 110085. Office: 250, Kayan Vihar, Delhi – 110033. Open daily, 9 am – 9 pm. See our Google reviews and directions.
This article is for general information only and is not legal advice.
