File & Defend a Cheque Bounce Case in India, A Complete Guide

A cheque bounce case can feel stressful for anyone, whether you are the person who expected the payment or the one who issued the cheque. This situation involves both civil and criminal consequences in India, and it affects trust in financial dealings. When you understand the complete process, you handle the issue with more confidence and clarity.

This guide explains everything about a cheque bounce case in India, including the updated law under the Bharatiya Nyaya Sanhita (BNS), procedures, defence options and the latest judgments. The aim is to help both individuals and companies follow the correct steps while protecting their rights.

What Is a Cheque Bounce Case

A cheque bounce case or check bounce case happens when your bank returns a cheque unpaid. The bank gives you a cheque return memo, which explains the reason for refusal. People often search for cheque bounce meaning, cheque dishonour case, and cheque return case because the reasons can be confusing.

A bounce can happen due to:

Low balance
Exceeds arrangement
Wrong signature
Mismatched date
Account closed
Overwriting
Post-dated cheque presented early

The legal action under the law applies mainly when the cheque gets dishonoured due to low balance or exceeds arrangement in cheque return.

Is Cheque Bounce a Criminal Offence in India

Yes. A cheque bounce case under Section 138 of the Negotiable Instruments Act is a criminal offence. Courts treat it seriously to protect the trust people place in cheques. This is why many search for is cheque bounce a criminal offence in india and cheque bounce case act.

Under the current law, a person may face:

Simple imprisonment
Monetary fine up to twice the cheque amount
Compensation orders

Updated Law: BNS (Bharatiya Nyaya Sanhita) and Cheque Bounce Cases

India introduced the Bharatiya Nyaya Sanhita (BNS) to replace the IPC. However, the cheque bounce case section continues under the Negotiable Instruments Act, 1881, because it is a special law.

What Changes Under BNS

Trial procedure aligns with the new criminal process under BNSS
Core offence remains under NI Act
Cheque dishonour penalties remain
Faster disposal encouraged

You can check the Government of India’s official releases for updates related to BNS and procedural rules.

Step-by-Step Cheque Bounce Case Procedure

A cheque bounce case procedure requires strict timelines. Many people search for cheque bounce process, check bounce case procedure, and cheque bounce procedure, so here is a clear breakdown in simple steps.

Phase 1: Notice Stage

1. Collect the Cheque Return Memo

Ans: Get the cheque return memo from your bank. It is the key proof that the cheque bounced.

2. Send the Legal Demand Notice

Ans: You must send a written notice within 30 days, informing the drawer about the bounce and demanding the exact amount.

3. Wait for the 15-Day Payment Period

Ans: The drawer has 15 days to make the payment. If they pay, the issue ends.

Phase 2: Filing the Cheque Bounce Case

Ans: You can file the case only after the notice period ends.

Where to File

Ans: File the complaint in the Magistrate court where your bank (payee bank) is located.

Documents Needed

Ans:

Original cheque
Cheque return memo
Legal notice copy
Proof of notice delivery
Statement of facts

Time Limit

Ans: You must file the case within 30 days after the 15-day notice period.

Phase 3: Court Trial and Judgment

Summons

The court issues summons to the drawer based on your complaint.

Trial

The case includes:

Evidence
Statements
Cross-examination
Final arguments

The court then gives the final decision.

Important Legal Provisions You Must Know

Section 138

Defines the crime of cheque dishonour.

Section 139

Creates a legal presumption that the cheque was issued for a valid debt. The accused must prove otherwise.

Sections 143A and 148 (2018 Amendment)

Allow courts to order interim compensation up to 20% during trial.
This protects the payee and reduces delay tactics.

Latest Judgment You Should Know

In the case of M/s Meters and Instruments Pvt. Ltd. v. Kanchan Mehta (2017), the Supreme Court held that cheque cases revolve around recovery, not punishment. Courts may allow compounding (settlement) even without the complainant’s consent in certain situations.

A recent 2025 judgment in Virender Singh Dongwal vs Manju Aggarwal strengthened the push for compounding to reduce case backlog and speed up justice.

Defence for Accused in a Cheque Bounce Case

Many accused search for terms like defence for accused in 138 ni act, cheque bounce case in favour of accused, or cheque bounce case section.
Here are common and valid defences:

No legally enforceable debt
Cheque used as security
Misuse of blank cheque
Notice not served correctly
Contract dispute
Amount demanded is incorrect
Signature mismatch not intentional

You only need to show a probable defence, not absolute proof.

How Individuals and Businesses Should Handle a Cheque Bounce Case

If You Are the Payee

Keep the cheque and memo safely
Send notice correctly
Maintain proof
Follow time limits strictly
Seek legal help if needed

If You Are the Drawer

Respond to notices quickly
Arrange funds if liable
Explain your defence clearly
Collect documents supporting your claim
Avoid ignoring court summons

FAQs

1. What is the punishment for a cheque bounce case

Ans: Punishment includes jail up to two years or fine up to twice the cheque amount.

2. Is cheque bounce a criminal offence

Ans: Yes, under Section 138 of the NI Act.

3. What is the time limit for filing a cheque bounce case

Ans: File within 30 days after the notice period ends.

4. What happens if the cheque bounces due to signature mismatch

Ans: It depends on whether the mismatch was intentional.

5. Can I settle a cheque bounce case outside court

Ans: Yes, courts encourage settlement.

6. What does exceeds arrangement mean

Ans: It means the cheque amount exceeded the allowed limit.

7. Where should I file my cheque bounce case

Ans: File in the court where your bank branch is located.

Outlook

The legal system in India aims to make the cheque bounce case process faster and clearer. With interim compensation and compounding encouraged, both sides benefit from quicker resolutions. When individuals and companies follow the proper steps, they protect their financial interests and maintain trust in transactions.

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The Essential Guide to Handling Cheque Bounce Cases in India