Handled by Expert Lawyers – Call +91 88515 75983 (Advocate KK Saxena, Karkardooma Court, Delhi)
Section 138 of the Negotiable Instruments Act, 1881, deals with the offense of cheque dishonor due to insufficient funds or when the amount exceeds the arrangement with the bank. It is a criminal offense and can lead to imprisonment and/or fine.
To file a case under Section 138, the following conditions must be fulfilled:
Cheque Presentation:
The cheque must be presented within 6 months of the date written on it or within its validity period.
Legal Demand Notice:
A demand notice must be issued by the payee or holder within 30 days of the cheque being returned unpaid.
Failure to Pay:
If the drawer fails to make payment within 15 days of receiving the legal notice, a complaint can be filed.
If found guilty, the drawer of the dishonored cheque may face:
Imprisonment up to 2 years
A fine up to twice the amount of the cheque
Or both, as per court discretion
The cheque bounce case can be settled amicably by compounding the offense, i.e., both parties agree to compromise. The court’s permission is required for this.
Cases are filed in Magistrate Courts.
The case must be filed where:
The cheque was presented, or
The bank of the payee is located
If more than one cheque is dishonored, separate complaints can be filed for each cheque under Section 138.
Cheque bounce cases require proper drafting of legal notices, filing within strict timelines, and court representation. A qualified and experienced lawyer ensures that:
Your legal notice is valid and enforceable
Your complaint is filed within limitation
Your case is well-presented in court for recovery or punishment
Get in touch with Advocate KK Saxena
📍 Location: Karkardooma Court, Delhi
📞 Call Now: +91 88515 75983
📝 Same-day legal notice drafting and complaint filing available
