A dishonoured cheque can do more than just cause financial disruption it can shake trust, create reputational damage, and lead to serious legal complications. At Suresh Law Firm, we regularly handle cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881, offering our clients aggressive representation and practical legal solutions. If you’ve received a bounced cheque or are being accused of dishonouring one, understanding your legal rights and options is critical.
Let’s walk you through what happens in a cheque dishonour case, how the law works, and how you can protect yourself or recover your dues swiftly and lawfully.
What is a Cheque Dishonoured Case?
A cheque dishonour or cheque bounce case arises when a cheque issued by a person is returned unpaid by the bank due to reasons like insufficient funds, account closure, or signature mismatch. This non-payment is not just a breach of trust it can amount to a criminal offence under Section 138 of the Negotiable Instruments Act if legal conditions are met.
A bounced cheque is a serious matter. Courts in India treat it as a criminal offence to ensure that cheques remain a reliable method of payment in commercial transactions.
Legal Grounds Under Section 138 of the Negotiable Instruments Act
The cheque bounce must meet the following legal conditions to qualify as a Section 138 offence:
- The cheque must have been issued for discharge of a legal liability or debt.
- The cheque is presented to the bank within its validity period (typically 3 months).
- The cheque is returned unpaid due to insufficient funds or other technical reasons.
- A legal notice is sent to the drawer within 30 days of cheque dishonour.
- The drawer fails to make the payment within 15 days of receiving the notice.
If all the above conditions are satisfied, the payee has the right to file a criminal complaint before a Magistrate’s Court.
Common Reasons Why Cheques Bounce
From a legal point of view, knowing the cause of cheque dishonour helps build a strong case. Some common reasons include:
- Insufficient account balance
- Stop payment instructions
- Account closed or frozen
- Signature mismatch
- Post-dated cheque presented early
- Alterations in the cheque
Remember, “stop payment” cases are also covered under Section 138 if the cheque was issued to settle a legal debt.
Step-by-Step Legal Process in Cheque Bounce Cases
At Suresh Law Firm, we make sure every legal step is followed with precision. Here’s how the case typically proceeds:
1. Demand Notice
A legal notice must be sent to the drawer within 30 days of the cheque being bounced. This notice should demand the full amount within 15 days.
2. Filing the Complaint
If payment is not made within the 15-day period, a criminal complaint can be filed within 30 days after the lapse. It must be filed before a Judicial Magistrate First Class in the jurisdiction where the bank is located.
3. Court Proceedings
The court will issue summons to the drawer. If the case is proven, the court may order up to two years of imprisonment, fine up to twice the cheque amount, or both.
Remedies Available to the Payee
As the recipient of a dishonoured cheque, you have legal remedies that can protect your interests:
- Criminal prosecution under Section 138
- Civil suit for recovery under Order 37 CPC
- Summary trials for quicker resolution
- Interim compensation as per new legal provisions
With expert legal support, you can recover your money and ensure justice is served in a timely manner.
Defenses Available to the Drawer
Not every bounced cheque amounts to a criminal offence. At Suresh Law Firm, we also represent clients who are wrongly accused. Common legal defenses include:
- Cheque issued as a security, not to settle a debt
- No legally enforceable debt existed
- Payment was made before receiving the legal notice
- Signature was forged
- Cheque was presented after expiry
The burden of proof lies initially on the payee, but once the case begins, the drawer must establish a valid defense.
How Suresh Law Firm Helps You in Cheque Bounce Matters
We understand how a bounced cheque can create both financial strain and emotional distress. Our team at Suresh Law Firm offers:
- Drafting legally sound notices that get results
- Representing clients in trial and settlement negotiations
- Strong courtroom strategy backed by years of experience
- Prompt filing of complaints to avoid delays or dismissal
- End-to-end case handling with transparency and trust
We don’t just fight cases we focus on delivering outcomes that protect your rights and restore your financial security.
Final Thoughts
A cheque dishonour is more than a bounced payment it’s a breach of trust that affects your business and peace of mind. Whether you’re fighting to recover your money or need to defend yourself from a criminal complaint, legal guidance is key.
Suresh Law Firm brings experience, efficiency, and personal commitment to every cheque bounce case. We’ve helped hundreds of clients get justice quickly and lawfully let us do the same for you.
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