Section 138 Negotiable Instruments Act, 1881
Bouncing a cheque is a criminal offense in India. Restores pressure on debtors with fast-track legal notice, criminal court summons, and legal prosecutions.
To maintain a valid criminal complaint under the NI Act, you must follow strict statutory deadlines.
Once the bank returns the cheque with a return memo, you have exactly 30 days to send a formal legal notice.
A formal legal demand notice is sent via Registered Post (RPAD) giving the debtor 15 days to pay the amount.
The debtor gets 15 clear days from the receipt of the legal notice to clear the outstanding cheque amount.
If payment is not made within 15 days, you have exactly 30 days to file a criminal case in court.
Unlike simple civil suits, Section 138 initiates criminal proceedings, leading to non-bailable summons.
The court can award imprisonment up to 2 years, or a fine up to double the cheque amount, or both.
Courts can direct the drawer to pay up to 20% of the cheque amount as interim compensation during trial.
Upload your bounced cheque scan and return memo for a free legal assessment.