A cheque given to me bounced. What can I do?
Simple answer
You can file a criminal case if the cheque was for a real debt. Send a written demand notice within 30 days of the bank's return memo. If they don't pay within 15 days of receiving it, file a complaint within the next one month.
Real-life examples
Karan lent ₹2 lakh to a friend, who repaid with a cheque. It bounced for 'insufficient funds'. Karan sent a notice within 30 days; no payment came in 15 days, so he filed a complaint before the Magistrate.
Vikram's cheque to a supplier bounced. After receiving the notice, he paid the full amount within 15 days. Since he paid in time, no offence is made out.
Thomas's uncle gave him a cheque as a birthday gift, and it bounced. Since it was not for any debt, there is no cheque bounce case.
What should you do?
- 1Keep the original cheque and the bank's return memo showing why it bounced.
- 2Within 30 days of getting the memo, send a written demand notice to the person who signed the cheque by registered post or speed post. Keep the receipts.
- 3Wait 15 days from the day they receive the notice. If they pay in full, the matter ends.
- 4If not paid, file a complaint before the Magistrate within one month after those 15 days, in the court where your bank branch is.
- 5Ask the court for interim compensation; it can order up to 20% of the cheque amount during the trial.
- 6Consider settling through compromise or Lok Adalat. Talk to a lawyer about the paperwork.
Exceptions & limits
- There is no criminal case if the cheque was not for a legally enforceable debt or liability, such as a gift.
- Missed the one-month complaint deadline? The court may accept a late complaint if you show sufficient cause. You can also file a civil suit to recover the money.
- The cheque must be deposited within its validity, which is usually 3 months from the date on it.
Official legal reference
Negotiable Instruments Act, 1881 — Section 138
A bounced cheque for a debt is an offence if notice (within 30 days) goes unpaid for 15 days; up to 2 years' jail, fine up to double, or both.
Negotiable Instruments Act, 1881 — Section 142
The payee must file a written complaint within one month of the cause of action, before a Magistrate where the payee's bank branch is.
Negotiable Instruments Act, 1881 — Sections 143A, 148
The court may order interim compensation up to 20% during trial; on appeal, a convicted drawer may have to deposit at least 20%.
Negotiable Instruments Act, 1881 — Section 147
Cheque bounce offences are compoundable: the parties can settle them by compromise.
Code of Civil Procedure, 1908 — Order XXXVII
Summary civil suit for faster recovery of money due on cheques, promissory notes and similar written instruments.
Where to get help
NALSA Free Legal Aid
Free lawyer and legal advice for eligible people through Legal Services Authorities.
eCourts Services
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Source & status
- Applies to
- All of India
- Law in force since
- 1 Apr 1989
- Legal review
- Draft — awaiting lawyer review
Educational information, not legal advice for your case. Exact facts and the law that applies matter — speak to a lawyer before acting.