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What Is a Cheque Bounce Under Indian Law?

As per Indian law, cheque bounce is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881. Cheque bounce is a criminal offence punishable with a fine more than double the cheque value or imprisonment for over 2 years. Cheque bounce occurs when the payment is a directive to the bank for payment in cheque and it is returned unpaid with the note of insufficient balance. The cheque in this case is known as bouncing. Regular cheque bounce can occur due to numerous reasons; one of the primary reasons is the insufficiency of funds in the account of the drawer. Other reasons may include The expired validity of a cheque

  • Overwriting
  • Damaged cheque
  • Signature mismatch
  • Mismatch of amounts or digits

The payee of the cheque may issue a cheque bounce notice to the drawer requiring payment within a specific time frame.

Common Cheque Bounce Scenarios We Handle

Our expert cheque bounce lawyers provide quick, tailored solutions for all types of dishonoured cheques, whether it is rent, salary, business, or loan-related cases. Here's how we address each situation:

  • Post-Dated Cheques for Rent

    Tenants often issue post-dated cheques for monthly rent, which bounce due to insufficient funds or stop payments. Our team assesses the lease agreement and payment history, issues a legal notice to the tenant, and files a case under Section 138 if payment isn’t made.

  • Client Payment Bounce

    Businesses face losses when clients' cheques bounce after goods or services have been delivered. We gather all evidence, like invoices, emails, and contracts, and prepare a legal notice. If the client still defaults, we file a Section 138 complaint and pursue compensation. We also help protect your future business deals by advising on better payment terms.

  • Salary Payment via Cheque

    Employees receive their salary via cheque that bounces, often due to financial mismanagement or disputes. We verify the employment and salary documents, then send a legal notice to the employer. If unresolved, we also help to file a cheque bounce case and assist in recovering unpaid salary through a labour court or civil claim.

  • Business Cheque Bounce

    In B2B transactions, cheques issued for project payments, supplies, or settlements often get dishonoured. We help build a strong case by documenting the debt, issuing legal notices, and filing under Section 138. We also help businesses pursue civil remedies to recover dues and advise on risk-proof contracts for future transactions.

  • Stop Payment & Account Closure Cases

    Some drawers intentionally issue cheques and then close the bank account or stop payment to avoid liability. This is considered a fraudulent act and a criminal complaint under Section 138 along with IPC Sections 406 and 420. Our team provides complete litigation support and helps you handle the case in court.

  • Cheques with Signature Mismatch

    Cheques bounce because the drawer’s signature doesn’t match bank records, either due to fraud or genuine error. Our experts guide both parties on how to avoid such errors in future transactions.

  • Damaged or Altered Cheques

    Cheques are dishonoured due to overwriting, physical damage, or tampering. In this case, we assess whether the drawer or payee caused the alteration. If it was a deliberate act to avoid payment, we initiate legal proceedings. If it’s a genuine error, we request a fresh cheque and mediate resolution without escalating.

When Can You File a Cheque Bounce Complaint?

You can lodge a case for cheque bounce 30 days after the 15-day grace period after the notice of dishonoured cheque. The grace period gives the drawer an opportunity to settle the payment, and when there is no payment during this period, the payee can go ahead and lodge the complaint in court within 30 days. The following is the step-by-step procedure to lodge a cheque bounce complaint:

  • Ensure that the cheque is presented to the bank for payment within 3 months of its date of issue
  • If the cheque is bounced for want of sufficient funds or for any other cause, the bank issues a dishonour memo
  • After you receive the bounce memo, give a legal notice to the drawer within 30 days calling for payment
  • The drawer must reply to the notice within 15 days and remit the payment
  • If the drawer fails to pay within 15 days, you are entitled to file a complaint in court within the next 30 days.

Our Cheque Bounce Legal Services

From initiation to completion, we oversee the complete cheque bounce complaint process with accuracy and expertise. Our professionals have dealt with 5000+ cheque bounce cases in India, providing quick effective results for our clients. Here's how we can assist:

Legal Notice Drafting (Section 138)

Legally drafted and compliant notice within the statutory time frame

    Cheque Bounce Complaint Online

    Inconvenience-free complaint filing support via online portals

      Court Representation

      Senior cheque bounce attorneys represent you in court, delivering robust arguments and timely progress updates

        Pre-litigation Settlement

        We assist in negotiating with the drawer to get your money back without extended litigation

          Documentation & Case Tracking

          End-to-end assistance, including document review, timeline management, and real-time updates.

            Legal Process to File a Cheque Bounce Complaint

            A cheque bounce case is usually initiated as a criminal complaint before a judicial magistrate. Upon conviction, the defaulter may be required to pay twice the amount of the cheque amount, along with a monetary penalty, cheque bounce fee, legal fees, and court fees. In some cases, civil suits may also be filed to recover dues. The legal consequences under the Negotiable Instruments Act, 1881 are serious and include imprisonment and financial penalties.Our staff handles the entire legal process from serving notices to retrieving your money, so that you do not have to take care of paperwork, delays, and court procedures. Below is how our staff handles your case at each step:

            • Step 1: Case Evaluation & Notice Drafting

              We scrutinize your cheque bounce, bank memorandum, and transaction information to validate legal enforceability under Section 138. We then prepare and issue a legally compliant demand notice to the drawer, with proof of delivery for use in court.

            • Step 2: Filing the Complaint in Court

              If the drawer does not pay you within 15 days, we draft and file a formal complaint with the Magistrate. All documentation, affidavit drafting, and court filings are attended to by our team on your behalf.

            • Step 3: Representing You in Court

              We appear with you in court and attend to all legal argumentation and procedural action. Should your personal attendance be required, we will assist you through the process and plead on your behalf.

            • Step 4: Summon to the Drawer

              After the Magistrate receives the complaint, we apply for the service of summoning to the drawer. We monitor and have it served properly to prevent unnecessary delays.

            • Step 5: Trial & Evidence Presentation

              We gather all the major evidence cheques, notices, memos, and communications and present them in a clear manner before the court. Our lawyers counter any false allegations from the drawer on the trial.

            • Step 6: Final Judgment & Recovery

              If the court finds the drawer guilty, we negotiate maximum restitution, including interest and attorney fees. We also assist in enforcing the judgment so you can get your money.

            Why Choose Vakilsearch for Cheque Bounce Cases?

            Vakilsearch is the go-to choice for cheque bounce case handling all over India, providing expert legal assistance that's fast, economical, and super effective. With a team of the best cheque bounce attorneys and a 95% success rate in case settlement without extensive litigation, we guarantee your case gets effectively solved.


            We streamline complicated court processes and assist you in navigating legal documents, such as sending a demand letter, drawing a notice to the drawer, and filing the legal action without any delay. With assistance for complaints against national automated clearing house (NACH) returns, bounce notices, and post-dated cheque disputes, we offer you dependable legal guidance. Whether you are filing against an individual or a company, our skilled cheque bounce lawyers ensure your complaint is filed promptly and appropriately.

            Our platform allows you to send online legal notices, monitor the progress of cases in real-time, and get periodic updates all from home. Be it rent, salary, or business payment issues, Vakilsearch offers India-wide legal service to suit your needs at a price that suits you.

            Take Action Against Cheque Bounce – Let the Experts Handle Everything

            Protect your rights and recover what you're owed with expert legal support.

            File a Complaint Now

            Frequently Asked Questions (FAQs)

            You need the bounced cheque, bank return memo, legal notice copy, and proof of delivery.
            When a cheque issued is returned unpaid by the bank—commonly referred to as a bounced cheque—due to insufficient account balance or any other reason mentioned in the cheque return memo, the cheque issuer becomes liable. Under the Negotiable Instruments Act, issuing a dishonoured cheque for a legally enforceable debt is a criminal offence. Once the cheque is presented and returned, a cheque bounce notice (also called a demand notice) must be sent to the drawer within the stipulated notice period.
            You must file the complaint within 30 days from the expiry of the 15-day notice period.
            A cheque bounce is not just a banking inconvenience it is a punishable offence under Section 138 of the Negotiable Instruments Act, 1881. Whether caused by insufficient funds, insufficient balance, or an error in the drawer’s account, a dishonored cheque can disrupt your business transactions and lead to legal trouble. Our online platform simplifies the process to file a cheque bounce complaint online and begin the legal process efficiently.
            Yes, you can recover the cheque amount through court if the case is proven.
            Starting 1 April 2025, the Government of India has tightened cheque bounce laws to curb fraud and protect payees. Punishment for intentional cheque bounce is now up to 2 years in jail and a fine of up to twice the cheque amount. Victims can file complaints online within 3 months of cheque issuance, with banks mandated to send alerts and detailed reasons for dishonour. Relief is still available for genuine banking or technical errors.
            Under Section 138 of the Negotiable Instruments Act, the drawer can face up to 2 years in jail, a fine up to double the cheque amount, or both. The payee can also file a civil suit to recover the amount, interest, and damages.
            The complaint must be filed within 45 days from the cheque bounce, including the notice period.
            Yes, some states allow online filing through e-courts or legal service websites.

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            Please note that we are a facilitating platform enabling access to reliable professionals. We are not a law firm and do not provide legal services ourselves. The information on this website is for the purpose of knowledge only and should not be relied upon as legal advice or opinion.