Cheque Bounce Complaint (Section 138 NI Act)

How It Works

1. 1

   Cheque Return and Document Collection

   Obtain the original dishonoured cheque and the bank's formal memo of return. Note the exact date of return — this starts the thirty-day clock for sending the demand notice.

2. 2

   Drafting and Sending Legal Demand Notice

   Counsel drafts a statutory demand notice citing the cheque details, date of dishonour, and demanding payment of the full amount within fifteen days of receipt. The notice is dispatched by registered post with acknowledgement due and simultaneously by courier or email for evidence purposes.

3. 3

   Monitoring Payment Window

   If the drawer pays the full cheque amount within fifteen days of receiving the notice, the matter is settled and no complaint is filed. If payment is not received, the cause of action arises on the sixteenth day.

4. 4

   Drafting and Filing the Magistrate Complaint

   Counsel prepares the complaint petition under Section 138 read with Section 142 NI Act, attaching all supporting documents. The complaint is filed before the competent Judicial Magistrate or Metropolitan Magistrate within thirty days of the cause of action arising.

5. 5

   Court Proceedings and Evidence

   The Magistrate issues summons to the accused. The complainant deposes by way of affidavit evidence and is cross-examined. The accused may offer a defence. An application under Section 143A for interim compensation is filed at the earliest stage.

6. 6

   Judgment and Recovery

   Upon conviction, the court may award imprisonment, fine, or both, and direct payment of compensation to the complainant. If the accused appeals, Section 148 requires deposit of at least 20% of the compensation amount.