Cheque Bounce Cases
Understand the legal process and remedies available when a cheque gets dishonoured.
Team Sachar Law Firm
7/31/20251 min read


Cheque bounce is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881. If someone issues a cheque that gets dishonoured due to insufficient funds, you have the right to take legal action.
When is it a Legal Offence?
Cheque was issued towards a legal liability.
Cheque gets dishonoured.
Payee sends a written demand notice within 30 days.
Drawer fails to pay within 15 days of receiving notice.
Legal Steps:
Send legal notice to drawer.
Wait 15 days.
If unpaid, file a criminal complaint within one month.
Court may summon the accused.
Offender can face jail up to 2 years or fine or both.
Defences Available to Accused:
No legal liability
Invalid notice
Time-barred cheque
Forgery or misuse
The case is bailable, compoundable, and non-cognizable.
Civil Remedies:
A parallel civil suit for recovery of cheque amount can also be filed.
Legally Enforceable Debt
A crucial element in cheque bounce cases is the presence of a legally enforceable debt or liability. This means the cheque must have been issued to discharge an existing debt or obligation that is legally recognized. If the cheque was given as a gift, donation, or for a future loan not yet due, the provisions of Section 138 of the Negotiable Instruments Act may not apply. Courts require clear evidence that the cheque was issued in return for a legitimate financial liability. Understanding this distinction is vital for both complainants and accused to assess the strength of their case.
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