Cheque bounce: how to file a Section 138 complaint

Section 138 of the Negotiable Instruments Act gives you a criminal remedy when a cheque bounces — but only if you meet three deadlines in the right order.

The procedure, in order

Collect the dishonour memo from your bank. When the cheque is returned unpaid, your bank issues a return memo stating the reason. Keep the original memo and the returned cheque — they are the foundation of the case, and the 30-day notice clock starts when you receive this information.

Send a written demand notice within 30 days. Send the drawer a written notice demanding payment of the cheque amount, within 30 days of receiving the dishonour information. Send it by registered post with acknowledgement due and keep the receipt and acknowledgement — proving the notice reached the drawer is where most cases fail.

Wait 15 days from the drawer's receipt of the notice. The drawer gets 15 days from receiving your notice to pay. If they pay in full within that window, the matter ends. If they do not, the offence is complete on the 16th day and your right to file arises.

File the complaint within the next 30 days. File a written complaint before the Judicial Magistrate First Class (or Metropolitan Magistrate), within 30 days of the 15-day period expiring. This is a private criminal complaint, not a police FIR — do not go to a police station to start it.

Attend the hearings and consider interim compensation. The Magistrate examines you before issuing summons. If the drawer pleads not guilty, you may ask the court to order interim compensation of up to 20% of the cheque amount under Section 143A while the trial runs.

When Section 138 applies

Not every unpaid cheque is a Section 138 offence. All of the following must be true:

The cheque was drawn on an account the drawer maintains with a bank.
It was issued to discharge a legally enforceable debt or liability — not as a gift, a security that was never meant to be banked, or an advance for something already cancelled.
It was presented to the bank within its validity period (three months from the date on the cheque).
It came back unpaid because there was not enough money in the account, or because it exceeded the arrangement agreed with the bank.

If the cheque bounced for a technical reason such as a signature mismatch or a stopped payment, the position is more complicated — courts have allowed Section 138 cases in some stop-payment situations, but the outcome turns on the facts. That is a point to take to an advocate rather than assume.

The three deadlines that decide your case

Section 138 is unusually strict about timing, and missing a deadline is the single most common reason complaints are dismissed without ever reaching the merits.

Step	Deadline	Runs from
Send the demand notice	30 days	The day you receive the dishonour information from the bank
Drawer's chance to pay	15 days	The day the drawer receives your notice
File the complaint	30 days	The day the 15-day period expires

The second deadline is the one people misread. The 15 days run from when the drawer receives the notice, not from when you posted it — which is exactly why registered post with acknowledgement due matters so much.

If you miss the 30-day filing window, the complaint is not automatically dead: the court can condone the delay if you show sufficient cause for it. But you are then asking for a discretion rather than exercising a right, so do not rely on it.

Which court to approach

File in the court that has jurisdiction over the branch of the bank where you, the payee, maintain the account — that is, the branch where you delivered the cheque for collection. This is set out in Section 142(2) of the Act.

This point is worth stating carefully, because a great deal of writing on the internet still gets it wrong. In 2014 the Supreme Court held in Dashrath Rupsingh Rathod v. State of Maharashtra that a complaint could only be filed where the drawer's bank was located. Parliament reversed that rule through the Negotiable Instruments (Amendment) Act, 2015, which came into force on 15 June 2015 and inserted Section 142(2). The payee's-bank rule is the law today; anything telling you to file where the drawer banks is describing a rule that was undone more than a decade ago.

What you can recover

On conviction, the drawer can face imprisonment of up to two years, or a fine of up to twice the cheque amount, or both. In practice courts frequently order compensation to the complainant rather than a long sentence.

Two provisions added in 2018 make the process less punishing for the person who is out of pocket:

Section 143A lets the trial court order the drawer to pay you interim compensation of up to 20% of the cheque amount while the case is still running.
Section 148 lets an appellate court require a convicted drawer who appeals to deposit at least 20% of the fine or compensation awarded, so an appeal cannot be used purely to delay payment.

A civil suit is still available

A Section 138 complaint is about punishing the dishonour. If your real goal is simply to recover the money, you can also file a civil suit for recovery of the debt — the two remedies can run alongside each other. Which one to lead with depends on the amount, the drawer's ability to pay, and how much time you can give the matter, so it is worth a conversation with an advocate before you choose.

Common mistakes

Going to the police first. This is a complaint to a Magistrate, not an FIR. A police station cannot start a Section 138 case for you.
Sending the notice by ordinary post or WhatsApp only. You must be able to prove delivery. Registered post with acknowledgement due is the safe route.
Filing on the 15th day. The drawer's 15 days must fully expire before the offence is complete. Filing early can get the complaint thrown out as premature.
Losing the return memo. Without the bank's memo you have no proof of dishonour or of when your 30 days began.
Depositing the cheque again and treating the fresh bounce as a reset. You can re-present a cheque, but do not assume it restarts your rights — take advice before relying on a later dishonour.

Common questions

Is Section 138 of the NI Act still valid after the new criminal laws?

Yes. The Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita and Bharatiya Sakshya Adhiniyam replaced the Indian Penal Code, Criminal Procedure Code and Evidence Act. They did not touch the Negotiable Instruments Act, 1881, so Section 138 continues exactly as before.

Can I file a cheque bounce case without a lawyer?

You can file the complaint yourself, and some complainants do. But the procedure is technical and unforgiving about deadlines and proof of notice, so most people are better served by an advocate. If your income is below the prescribed limit, or you fall within a category such as a woman, a Scheduled Caste or Scheduled Tribe member, or a senior citizen, you may qualify for free legal aid under the Legal Services Authorities Act, 1987.

Where do I file if the drawer and I bank in different cities?

In the court covering the branch where you deposited the cheque for collection — your own bank's branch — under Section 142(2). The older rule pointing to the drawer's bank was overturned by the 2015 amendment.

What if the drawer pays after I send the notice?

If the full cheque amount is paid within 15 days of the drawer receiving your notice, no offence under Section 138 is committed and there is nothing to file. Keep a record of the payment.

How long does a cheque bounce case take?

The Act contemplates a summary trial completed within six months, but real timelines vary considerably by court and workload, and can run to a few years. The interim-compensation route under Section 143A exists precisely because these cases often outlast the complainant's patience.