Cheque Bounce

Notice for Cheque Bounce

Section 138 of the Negotiable Instruments Act, 1881 governs the law relating to Cheque Dishonour (popularly known as cheque bounce). In the light of the said Section, the payee can criminally prosecute the drawer in case the cheque issued by the drawer gets dishonored or bounced. With respect to the recent amendment made to the Act the bouncing of a cheque is considered to be a much serious offense.

A cheque is considered to be dishonored when there is no sufficient amount present in the drawer’s bank account as on the date of maturity or due to wrong signature or mismatching of figures. Approaching Panomics Legal Mentors in legally assisting you in matters relating to cheque dishonor offenses ensures the best of quality and effective resolving measures.

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  • Issue a notice to the drawer within 30 days of dishonor of cheque and ask to pay the amount within 15 days to the drawer.
  • If the payment is not done within 15 days, a case for recovery of money for the dishonor of cheque can be filed within 30 days from the expiry of 15 days’ notice.

According to Section 138 of the Negotiable Instruments Act, the dishonoring of the cheque is considered as a criminal offense and the offender will be punished with imprisonment or a hefty fine. The recent amendment to the Negotiable Instrument Act has included Section 143 A and new section 148 which provides that the payee is given an interim relief of 20% of compensation amount during the proceedings of the case.


The party must provide the following documents before the court: –

  1. A copy of the notice intimating the dishonor of the cheque issued to the drawer.
  2. The original of the dishonored cheque.
  3. A memo stating that the cheque was dishonored by the bank and the grounds for such dishonor.


  1. ISSUE NOTICE: A notice has to be issued to the drawer detailing the grounds for cheque dishonor, date of issue of the cheque, the copy of a memo from the bank, etc.
  2. PAYMENT OF DUE AMOUNT:After the notice is issued, the drawer is expected to pay the due amount mentioned in the cheque within 15 days. In case of non-payment, the payee can approach the court to file a suit.
  3. FILING OF SUIT:The payee with the assistance of a lawyer can file a suit seeking recovery of amount and compensation by producing an oath letter, the copy of the issued notice, memo from the bank intimating dishonor and original cheque which is dishonored along with the complaint form.
  4. PROCESS FORM:The court will verify the complaint and other documents and on satisfaction, the complainant or the authorized lawyer has to fill a Process Form.
  5. ISSUE SUMMONS:The court will Issue Summons to the offender asking him/her to appear before the court and submit their defenses. In case of non-appearance, the court will issue a non-bailable warrant against the offender.
  6. PRODUCTION OF EVIDENCE AND HEARING:The court will examine the evidence and arguments set out by the parties.
  7. ORDER:On being satisfied with the arguments and evidence the court will issue an order that it may think fit.
  8. APPEAL:Being dissatisfied with the order of the court the party affected can file an appeal.