Cheque Bounce Case in Jorhat

Local jurisdiction

Registrar (RoC)

RoC Shillong — Morello Building, Ground Floor, Shillong – 793001

Jurisdictional HC

Gauhati High Court

GSTIN prefix

18 (Assam)

Professional Tax

Assam levies Professional Tax (max ₹2,500/year). Applicable to companies employing salaried staff.

Business hubs

Tea Gardens & Research (TRA), Oil, Agri

Jorhat is an upper-Assam tea, tea-research (TRA), and oil-trade centre.

Also in: Dibrugarh Guwahati

A cheque bounce case arises under Section 138 of the Negotiable Instruments Act, 1881 when a cheque is dishonoured — usually for insufficient funds or because it exceeds the arrangement with the bank. The payee must send a written demand notice within 30 days of receiving the bank's cheque-return memo; the drawer then gets 15 days to pay. If the amount stays unpaid, a criminal complaint can be filed before the Magistrate within 30 days of that 15-day period ending. The offence is punishable with imprisonment up to 2 years and/or a fine up to twice the cheque amount, and the court may order interim compensation under Sections 143A and 148.

30 days

To send the demand noticeThe statutory demand notice must reach the drawer within 30 days of the bank's cheque-return memo. Miss this window and the right to prosecute under Section 138 is generally lost.

Understand It

What Is Cheque Bounce Case?

A quick, plain-language explanation before the details.

In simple terms

A cheque bounce case is a legal action taken when a cheque you received is dishonoured by the bank. Under Section 138 you send a demand notice, and if the money is still not paid, you file a criminal complaint to recover the amount and hold the drawer accountable.

Legally

Under Section 138 of the Negotiable Instruments Act, 1881, dishonour of a cheque for insufficiency of funds (or because it exceeds the arrangement with the bank) is a criminal offence, provided the cheque was issued to discharge a legally enforceable debt or liability, the demand notice was served within 30 days, and the drawer failed to pay within 15 days of the notice.

Governing authority

The complaint is tried by a Judicial Magistrate of the First Class (or Metropolitan Magistrate) as a summons case, with appeals lying to the Sessions Court and High Court.

Validity

The complaint must be filed within 30 days of the 15-day payment period expiring. Courts may condone a delay on sufficient cause shown, but the statutory windows are strict and should not be relied upon to lapse.

Service Intelligence

Quick Facts

Professional Fee

Custom quote

Governing Law

NI Act 1881

Key Section

Section 138

Notice Deadline

Within 30 days

Pay Window

15 days to drawer

Forum

Magistrate Court

Punishment

Up to 2 yrs / 2× amount

Mode

100% Online

Legal & Regulatory Framework

Act

Negotiable Instruments Act, 1881

Key Sections

138–147, 143A, 148

Punishment

Up to 2 yrs / 2× amount

Forum

Judicial Magistrate

Notice Window

30 days

Last Reviewed

17 Aug 2026

Before You Start

Is This Service Right for You?

Ideal for

Businesses whose supplier or customer cheque bounced
Individuals holding a dishonoured personal or loan-repayment cheque
Landlords with a bounced rent or security-deposit cheque
Lenders and financiers recovering EMIs or loan instalments
Drawers who have received a Section 138 demand notice or summons
Anyone facing a cheque dishonour for insufficient funds or a stopped payment

You may need this if

Your cheque was returned with a memo like "funds insufficient"
You must send the statutory demand notice before the 30-day deadline
The 15-day payment window has lapsed without payment
You want to file a criminal complaint before the Magistrate
You have been served a Section 138 notice or court summons
You want to press for interim compensation under Section 143A / 148

Not sure if you need this?

Talk to an Expert →

Why It Matters

Why a Section 138 Cheque Bounce Case Matters

A dishonoured cheque is not just a broken promise — it is a criminal offence with strict deadlines. Acting correctly and on time protects your right to recover the money.

01

Deadlines Are Unforgiving

The 30-day notice window and the 30-day filing window are strict. A single missed deadline can extinguish your right to prosecute under Section 138 entirely.
02

Criminal Pressure to Pay

Section 138 is a criminal offence punishable with up to two years' imprisonment. That pressure often makes the drawer settle far faster than a civil recovery suit.
03

Recover Twice the Amount

The court can impose a fine up to twice the cheque amount and direct that it be paid to you as compensation — recovering more than the cheque's face value.
04

Interim Compensation Early

Under Section 143A the court can order the drawer to pay up to 20% of the cheque amount as interim compensation even before the case is decided.
05

Defend a Wrongful Complaint

If you have received a Section 138 notice or summons, a timely, well-drafted reply and defence can protect you from an unjust conviction and liability.
06

Leverage to Settle

Section 138 cases are compoundable — a strong case gives you leverage to negotiate a full, enforceable settlement without a drawn-out trial.

Transparent

Simple, Transparent Pricing

Custom quote for your case

Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.

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Eligibility

Who Can Apply?

Individuals holding a dishonoured cheque

Companies, firms & LLPs (payee businesses)

Banks, NBFCs & lenders recovering dues

Partners, proprietors & authorised signatories

Landlords with bounced rent / deposit cheques

Drawers defending a Section 138 complaint

Eligibility checklist

The cheque was issued to discharge a legally enforceable debt or liability
The cheque was presented to the bank within its validity (three months)
The bank returned it with a cheque-return / dishonour memo
A written demand notice can be sent within 30 days of the return memo
The drawer failed to pay within 15 days of receiving the notice
The complaint is filed within 30 days of that 15-day period ending

End-to-End

Everything You Need. One Professional Team.

01

Case Assessment

Review the cheque, return memo and underlying debt to confirm a valid Section 138 case.

02

Demand Notice Drafting

Draft and dispatch the statutory demand notice within the 30-day window, by registered post and email.

03

Reply Handling

Track the 15-day payment window and respond to any reply the drawer sends.

04

Complaint Drafting

Prepare the criminal complaint with supporting affidavit and documents for the Magistrate.

05

Filing & Cognizance

File the complaint before the appropriate court and appear for pre-summoning evidence.

06

Evidence & Hearings

Lead evidence, examine witnesses and argue the matter through the trial.

07

Interim Compensation

Apply for interim compensation under Section 143A / 148 wherever available.

08

Settlement or Judgment

Negotiate a compounded settlement or pursue judgment, fine and recovery.

No Ambiguity

What You’ll Receive

Case assessment & strategy note

Advocate-drafted statutory demand notice

Proof of dispatch & service records

Criminal complaint & supporting affidavit

Filing before the Magistrate court

Representation at hearings

Section 143A / 148 interim compensation application

Settlement deed or final order follow-up

Checklist

What Documents Are Required for a Cheque Bounce Case?

Requirements are grouped by cheque proof, the underlying debt and party details. Keep clear scans (PDF/JPG) ready — everything is collected securely online, and we provide a checklist matched to your case.

Choose a document group

Cheque & Dishonour Proof

Core evidence of the bounce

5 documents

Original dishonoured cheque
Bank cheque-return / dishonour memo
Bank statement showing presentation & return
Deposit slip / pay-in slip
Cheque details — number, date and amount

Preserve the return memo date

The date on the bank's cheque-return memo starts the 30-day clock for the demand notice. Keep the original memo safe — it is the single most important document in the case.

Present within cheque validity

A cheque is valid for three months from its date. Present it within that period; a cheque deposited after it has expired cannot support a Section 138 case.

The debt must be legally enforceable

Section 138 applies only where the cheque was issued for a legally enforceable debt or liability. Invoices, agreements and ledgers establishing the debt strengthen the complaint.

Keep proof of service

Retain the registered-post receipt, courier tracking and email records proving the demand notice was sent — service of notice is a key ingredient the court examines.

Don’t have all the documents?

We’ll identify what your case needs →

Step by Step

How a Cheque Bounce Case Works (Step by Step)

From dishonour to judgment, each stage is time-bound. We manage the deadlines and paperwork so nothing lapses.

01

Cheque Dishonoured

The bank returns the cheque unpaid with a memo (e.g. "funds insufficient"). This is the trigger for the whole process.

02

Demand Notice (within 30 days)

Our advocate drafts and dispatches the statutory demand notice to the drawer within 30 days of the return memo, demanding payment.

03

15-Day Payment Window

The drawer has 15 days from receiving the notice to pay. If paid, the matter closes; if not, a cause of action arises.

04

Complaint Before Magistrate

Within 30 days of the payment window ending, we file the criminal complaint under Section 138 before the appropriate Magistrate.

05

Summons, Evidence & Trial

The court issues summons, records evidence and hears the matter as a summons case. We lead evidence and argue on your behalf.

06

Judgment or Settlement

The case ends in a compounded settlement, or a judgment imposing fine / imprisonment with recovery of the cheque amount.

How Long It Takes

How Long Does a Cheque Bounce Case Take?

Stage	Expected Time
Demand notice — draft & dispatch	Within 30 days of return memo
Payment window for the drawer	15 days from notice
Filing the complaint	Within 30 days of the window ending

The statutory windows above are fixed by Section 138. Once filed, the trial duration depends on the court's docket and cooperation of the parties; Section 138 matters are meant to be tried expeditiously as summons cases, and many resolve through settlement.

Compliance Calendar

Key Dates — At a Glance

Frequency	What Is Due
On Dishonour	Preserve the original cheque & return memo · Note the memo date — the 30-day clock starts · Gather proof of the underlying debt
During Notice Stage	Serve the demand notice within 30 days · Retain registered-post & email proof · Track the drawer's 15-day payment window
During Trial	Attend hearings or authorise representation · Apply for 143A / 148 interim compensation · Preserve all original evidence for the court
On Settlement / Judgment	Record any settlement in a compounding application · Ensure payment / recovery of the ordered amount · Obtain certified copy of the final order

Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.

Why Outsource

Doing It Yourself vs TaxClue

Doing It Yourself

Work out the 30-day and 15-day deadlines correctly yourself
Draft a legally sound demand notice with the right ingredients
Prove service of the notice on the drawer
Draft the criminal complaint and supporting affidavit
File before the correct Magistrate with jurisdiction
Lead evidence and cross-examine at trial
Risk the case failing on a technical or timing defect

With TaxClue

Advocate computes and tracks every statutory deadline
Notice drafted with all Section 138 ingredients
Service effected and documented properly
Complaint and affidavit professionally drafted
Filed before the court with correct jurisdiction
Evidence led and matter argued by our team
Interim compensation and settlement pursued for you

Skip the guesswork.

Let an expert handle it →

Avoid Delays

Common Mistakes That Delay Your Application

Sending the demand notice after the 30-day window

Presenting a cheque after its three-month validity

A vague notice that omits the exact cheque amount demanded

Failing to keep proof that the notice was served

Filing the complaint after the 30-day filing window

Filing in a court without proper jurisdiction

Not establishing the underlying legally enforceable debt

Ignoring a Section 138 summons instead of defending it

TaxClue reviews your documents before filing to reduce avoidable errors.

Stay Compliant

What to Keep in Mind During and After the Case

On Dishonour

Preserve the original cheque & return memo
Note the memo date — the 30-day clock starts
Gather proof of the underlying debt

During Notice Stage

Serve the demand notice within 30 days
Retain registered-post & email proof
Track the drawer's 15-day payment window

During Trial

Attend hearings or authorise representation
Apply for 143A / 148 interim compensation
Preserve all original evidence for the court

On Settlement / Judgment

Record any settlement in a compounding application
Ensure payment / recovery of the ordered amount
Obtain certified copy of the final order

Risk Assessment

Penalties & Consequences

What is at stake if you do not comply

Sending the demand notice after the 30-day window forfeits the Section 138 case
Presenting a cheque after its three-month validity cannot support a case
Failing to keep proof that the notice was served weakens the complaint
Filing the complaint after the 30-day filing window bars it
Not establishing the underlying legally enforceable debt defeats the case

Latest Updates

Regulatory Updates 2025–26

2025: A cheque bounce case under Section 138 of the Negotiable Instruments Act needs a demand notice within 30 days of dishonour and a complaint within the following statutory window.

The Difference

Why Businesses Choose TaxClue

01

Advocate-Led

Practising advocates who handle Section 138 cheque bounce matters draft your notice, complaint and evidence.

02

Deadline Discipline

We compute and track every statutory window so a case is never lost to a missed 30-day or 15-day deadline.

03

End-to-End

From the first notice to judgment or settlement — fully managed, with minimal effort from you.

04

100% Online

Documents and updates over WhatsApp / email; court appearances handled by our team.

05

Transparent Fees

A clear, itemised quote upfront after a quick case assessment — no hidden professional charges.

06

Settlement Focused

Where recovery is the goal, we press criminal leverage to secure a full, enforceable settlement.

Data Care

Your Documents Deserve Professional Care

Case documents handled by advocates under confidentiality
Access limited to the team working on your matter
Communication over secure digital channels
Original evidence handled carefully and returned as needed

Answers

Frequently Asked Questions

What is a cheque bounce case under Section 138?

It is a criminal case under Section 138 of the Negotiable Instruments Act, 1881, filed when a cheque issued to discharge a legally enforceable debt is dishonoured by the bank — usually for insufficient funds. The payee sends a demand notice and, if unpaid, files a complaint before the Magistrate.

What is the time limit to send the demand notice?

The written demand notice must be sent to the drawer within 30 days of receiving the bank's cheque-return memo. Missing this window generally destroys the right to prosecute under Section 138 for that dishonour, so the deadline is critical.

How much time does the drawer get to pay?

The drawer has 15 days from the date of receiving the demand notice to pay the cheque amount. If the payment is made within this period the matter closes; if not, a cause of action to file the complaint arises.

When must the complaint be filed in court?

The criminal complaint must be filed within 30 days of the 15-day payment window ending. Courts may condone a delay on sufficient cause being shown, but you should never rely on the deadline lapsing.

What is the punishment for a bounced cheque?

On conviction under Section 138, the drawer can face imprisonment of up to two years, or a fine up to twice the cheque amount, or both. Courts commonly direct that the fine or compensation be paid to the complainant.

What is interim compensation under Section 143A?

Section 143A allows the court to order the drawer to pay the complainant interim compensation of up to 20% of the cheque amount during the trial, even before the case is decided. Section 148 allows a similar deposit in appeals against conviction.

Which court handles a cheque bounce case?

A cheque bounce complaint is tried by a Judicial Magistrate of the First Class or a Metropolitan Magistrate as a summons case. Territorial jurisdiction generally lies where the payee's bank branch that presented the cheque is located.

Can a cheque bounce case be settled or withdrawn?

Yes. Offences under Section 138 are compoundable, so the parties can settle at any stage. On a genuine settlement and payment, the complaint can be compounded and the case closed, often with the court's permission.

What documents do I need to file a case?

The original dishonoured cheque, the bank's cheque-return memo, proof of the underlying debt (invoice, agreement or ledger), a copy of the demand notice, and proof that the notice was served on the drawer. We provide a checklist matched to your case.

What if the cheque bounced because payment was stopped?

A stop-payment instruction does not necessarily protect the drawer. Courts have held that stopping payment on a cheque issued for a legally enforceable debt can still attract Section 138, unless the drawer proves the cheque was not issued for such a debt.

I received a Section 138 notice or summons — what should I do?

Do not ignore it. A timely, well-drafted reply to the notice and a proper defence at trial can protect you. Our advocates assess whether the debt is enforceable, whether the deadlines were met and what defences are available to you.

Can I also recover the money separately?

Yes. A Section 138 criminal case and a civil recovery suit for the same amount can run in parallel. The criminal case creates pressure to pay, while the recovery suit or summary suit pursues the money as a civil debt.

How do I file a cheque bounce case step by step?

When the cheque is dishonoured, send a written demand notice to the drawer within 30 days of the bank cheque-return memo, demanding payment of the cheque amount. The drawer then has 15 days to pay. If the money is not paid, file a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 before the Magistrate within 30 days of that 15-day period expiring, supported by the cheque, the return memo, proof of the debt and proof that the notice was served.

What is the time limit for filing a cheque bounce complaint?

There are two key windows. The demand notice must be sent within 30 days of receiving the bank cheque-return memo. The drawer gets 15 days to pay. If unpaid, the complaint must be filed within 30 days after that 15-day period ends. Courts can condone a delay in filing on sufficient cause shown, but the notice deadline is strict and missing it generally destroys the right to prosecute.

What documents are required to file a Section 138 case?

You need the original dishonoured cheque, the bank cheque-return / dishonour memo, proof of the underlying legally enforceable debt (invoice, agreement or ledger), a copy of the demand notice, and proof that the notice was served — the registered-post receipt, courier tracking and email records. Identity details of the complainant and drawer are also required.

Is a cheque bounce a criminal or a civil case?

A Section 138 cheque bounce case is criminal in nature — it is tried by a Magistrate as a summons case and can result in imprisonment up to two years and/or a fine up to twice the cheque amount. Separately, you can pursue a civil recovery or summary suit for the same money. The two proceedings can run in parallel because one punishes the offence while the other recovers the debt.

What should I do if I receive a cheque bounce notice or summons?

Do not ignore it. Respond within time with a well-drafted reply to the demand notice, and prepare a proper defence for trial. Possible defences include that the cheque was not issued for a legally enforceable debt, that the statutory deadlines were not met, or that the notice was defective. An advocate can assess the enforceability of the debt and the available defences before you respond.

Verify Everything

Official Sources & Legal References

Every legal detail on this page — the sections, deadlines and punishments — is drawn from primary law and official sources. Verify them directly:

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Free Legal DraftsDemand notice and complaint drafts Document ChecklistCheque, dishonour and debt proof needed to file Compliance GuideThe 30-day and 15-day statutory deadlines to track Free Downloads LibraryTemplates, checklists & workbooks Free Legal DraftsReady-to-use draft formats All ResourcesGuides, calendars & checklists

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