How to file a cheque bounce complaint under §138 NI Act — complete 2026 guide

Roughly 35-40 lakh §138 cases are pending across Indian courts (Supreme Court e-Committee data, 2025) — about a third of all pending criminal matters. The Supreme Court has repeatedly tried to fast-track them (In Re: Expeditious Trial of Cases under §138 NI Act, 2021), and the BNSS 2023 retained the summary-trial procedure under §223 + §225 (replacing CrPC §200/§202). For most ordinary disputes, the case settles the moment the drawer realises the law is real.

Section 138 of the Negotiable Instruments Act, 1881 makes it a criminal offence for the drawer of a cheque to allow the cheque to be dishonoured, when the cheque was issued in discharge (whole or part) of a legally enforceable debt or other liability.

It is not a civil suit for recovery — it is a criminal complaint that creates pressure to pay. You can also file a parallel civil suit under Order XXXVII CPC (summary suit) to recover the money itself, but most people use §138 alone because the criminal pressure usually produces settlement.

Five conditions must all be true for §138 to apply:

1. The cheque was dishonoured by your (payee's) bank — and you have the Cheque Return Memo as proof, with the reason printed on it (“Insufficient Funds”, “Account Closed”, “Stop Payment”, “Signature Mismatch”, “Funds Insufficient”, etc.).
2. The cheque was issued for discharge of a legally enforceable debt or liability — for goods supplied, services rendered, loan repayment, salary, rent. Cheques given as gift, donation, security (without underlying debt), or to a relative as friendly loan with no document are repeatedly held to be outside §138.
3. The cheque was presented within its validity — currently 3 months from the date written on the cheque (RBI circular 2011, reduced from 6 months).
4. You sent a written notice of demand to the drawer within 30 days of receiving information of dishonour.
5. The drawer failed to pay the cheque amount within 15 days of receiving the notice.

If all five are satisfied, you file the complaint within 30 days of expiry of the 15-day notice period. The maximum window from the day of dishonour to filing is therefore 30 + 15 + 30 = 75 days. Miss this and your right to file under §138 is gone forever for that cheque (you can re-present and try again only if the cheque is still within its 3-month validity).

The key statutes:

• §138 NI Act — creates the offence; punishment up to 2 years imprisonment + fine up to twice the cheque amount, or both.
• §142 NI Act — procedure for taking cognizance: only the payee/holder-in-due-course can file; only a written complaint; within 30 days of cause of action.
• §143 NI Act — summary trial under BNSS 2023 (formerly CrPC); intended to be completed within 6 months (rarely is, but legally so).
• §147 NI Act — the offence is compoundable — drawer and payee can settle at any stage, even after conviction.
• BNSS 2023 §223 + §225 — replaces CrPC §200 and §202 (taking of complaint, examination of witnesses).

The leading Supreme Court ruling on where to file is Dashrath Rupsingh Rathod v. State of Maharashtra (2014), modified by the 2015 amendment to §142(2): the complaint must be filed at the place where the payee maintains the bank account in which the dishonoured cheque was deposited. This stopped “forum shopping” where companies were filing thousands of complaints in their head-office city against drawers across India.

When the cheque bounces, your bank issues a Cheque Return Memo (also called “Cheque Returning Memorandum”). This is the single most important piece of evidence in the entire case.

• Make sure the memo is dated, signed/stamped by the bank, and clearly states the reason for return.
• Common reasons: 31 (Insufficient Funds), 33 (Refer to Drawer), 36 (Refer to Drawer / Insufficient Funds), 70 (Stop Payment), 88 (Drawer's Signature Differs), 93 (Account Closed).
• Keep the original. Make 3-4 photocopies.
• Some banks now send the memo by email/SMS only — request a physical signed copy from your branch in writing. The court will need the original.

If your bank refuses to give a memo (rare but happens with very old cheques or some co-operative banks), file a written complaint with the branch manager and copy the Banking Ombudsman (RBI). Without the memo, §138 is impossible.

This is where most cases die — people miss the 30-day notice deadline and lose the §138 remedy permanently. Day 1 is the date you receive information of dishonour (typically the date stamped on the Memo).

The notice must be sent in writing by:

• Registered Post AD (Acknowledgement Due) — primary mode. The postal AD card is your proof of delivery.
• Speed Post with tracking — also acceptable; print the delivery confirmation from indiapost.gov.in.
• Courier with tracking — additional, not substitute.
• Email — additional, not substitute (until formally recognised by the High Court of your state).

Address the notice to the drawer's address as it appears on the cheque OR the address known to you. Even if the drawer refuses to accept the registered letter, refusal is deemed service (C.C. Alavi Haji v. Palapetty Muhammed, 2007 SC).

Sample notice format (use a lawyer; this is for orientation only):

                LEGAL NOTICE UNDER §138 NEGOTIABLE INSTRUMENTS ACT 1881
                            (Through Registered Post AD)

From:  [Your name + full address + phone]
       Through Adv. [Lawyer name + bar enrollment + chamber address]

To:    [Drawer's name + full address as on cheque]
       Date: [DD MM YYYY]

Sir/Madam,

Under instructions from and on behalf of my client [your name], I serve upon
you the following NOTICE:

1. That you issued cheque no. [______] dated [DD MM YYYY] drawn on
   [Drawer's bank + branch] for ₹[amount in figures] (Rupees [amount in
   words] only) in favour of my client in discharge of [describe the
   transaction — e.g., "an outstanding payment for diesel supplied vide
   invoice no. ___ dated ___"].

2. That my client deposited the said cheque in his account no. [_______]
   maintained at [Payee's bank + branch] on [date of deposit].

3. That the said cheque was dishonoured and returned by your banker on
   [date of return memo] with the remarks "[exact remarks from the Cheque
   Return Memo]". Cheque Return Memo dated [____] is annexed.

4. That the cheque was issued by you in discharge of a legally enforceable
   debt and you are liable for the consequences of dishonour under §138 of
   the Negotiable Instruments Act, 1881.

5. You are hereby called upon to PAY the sum of ₹[amount] to my client
   within FIFTEEN (15) days of receipt of this notice, failing which my
   client shall be constrained to initiate criminal proceedings against you
   under §138 of the Negotiable Instruments Act, 1881, without any further
   reference to you, entirely at your risk and cost.

                                                       Yours faithfully,

                                                       [Lawyer's signature]
                                                       Adv. [Name], for [Client]

Keep the AD card / Speed Post receipt + tracking printout safe — these prove date of dispatch + date of delivery.

The 15 days runs from the date the drawer received the notice (per the AD card) — not from the date you posted it. If the drawer refuses delivery, the date of refusal counts as deemed receipt.

During these 15 days:

• Don't file the complaint — it will be premature and rejected.
• Keep a quiet record of any payment, partial payment, or response.
• If the drawer pays in full within 15 days — case is over. No §138 cause of action arises.
• If the drawer pays partially — write back stating the balance is still due and that you reserve §138 rights for the unpaid portion (the law is split on partial payment; courts mostly hold §138 still applies to the unpaid balance).

Once the 15-day notice period expires without full payment, you have 30 days to file the criminal complaint. So your filing window is Day 46 to Day 75 counting from the date of dishonour (rough math; depends on actual dates of receipt).

Where to file (post-Dashrath Rupsingh + 2015 amendment): the Magistrate of First Class court within whose territorial jurisdiction the branch of your bank where you deposited the cheque is located. Not where the drawer lives. Not where the cheque was issued. Where your bank is.

The complaint is filed in the form of a written complaint under §223 BNSS 2023 (earlier §200 CrPC), and must contain:

              IN THE COURT OF JUDICIAL MAGISTRATE FIRST CLASS
                          AT [city] [district]

           Criminal Complaint No. _____ of 2026
                         (Under §138 r/w §142, NI Act 1881)

[Your name + address + age + occupation]                ... COMPLAINANT

                              Versus

[Drawer's name + address + age]                         ... ACCUSED

       COMPLAINT UNDER §138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

Most respectfully showeth:

1. [Brief facts — relationship between parties, transaction giving rise
   to debt, invoice/agreement particulars.]

2. [Cheque particulars — number, date, amount, drawee bank, branch.]

3. [Date of presentation by complainant + bank where deposited.]

4. [Date of dishonour + reason as per Cheque Return Memo.]

5. [Date of demand notice + mode of dispatch + date of delivery / refusal.]

6. [Expiry of 15-day notice period + non-payment.]

7. [Cause of action arose on (date) within jurisdiction of this Hon'ble
   Court as the complainant maintains his account at (bank + branch) at
   (place), which is within the territorial jurisdiction of this Court.]

8. [Cognizance is sought within 30 days of cause of action; complaint is
   within limitation under §142(b).]

PRAYER:
   It is therefore most respectfully prayed that this Hon'ble Court may
   be pleased to:
   (a) Take cognizance of the offence under §138 NI Act 1881;
   (b) Issue summons to the accused;
   (c) Try and convict the accused;
   (d) Award compensation under §357 BNSS to the complainant equal to
       twice the cheque amount;
   (e) Pass such other orders as this Hon'ble Court deems fit.

                                                  COMPLAINANT
                                                  Through Counsel
                                                  Adv. [Name]

Verification:
   I, [name], aged [__] years, residing at [____], do hereby solemnly
   verify that the contents of paragraphs 1 to 8 above are true to my
   personal knowledge.

Documents to annex (in original + 2 copies):

• Original cheque
• Original Cheque Return Memo
• Original Demand Notice + Postal Receipt + AD card
• Tracking printout (Speed Post / Registered)
• Underlying invoice / agreement / loan document showing the debt
• Statement of account or ledger
• Your ID + address proof
• Affidavit of complainant (verifying complaint)

Court fee: typically ₹100-500 depending on State court fee schedule (Maharashtra ~₹100; Delhi ~₹200; UP ~₹350). Lawyer fee for drafting + first appearance: ₹5,000-25,000 depending on city and seniority.

The Magistrate examines you (complainant) on oath under §223 BNSS — usually a brief verification that the complaint is genuine. If satisfied, the Magistrate:

• Records preliminary statement
• Takes cognizance of the offence
• Issues summons (or warrant in serious cases) to the accused
• Lists the matter for first appearance — usually 4-8 weeks later

The accused must appear, file a reply, and the case enters trial.

Under §143, §138 cases are triable as summary trial (lighter procedure, no detailed evidence recording, judgment on the spot in many cases). The intended timeline is 6 months — actual median across Indian courts is closer to 3-5 years.

At any stage — before, during, or even after conviction — the parties can settle under §147. Settlement procedure:

• Joint application to the court signed by both parties.
• Court records the settlement, accepts the compromise, closes the case.
• If the settlement is partly performed, court usually keeps the case alive until full performance.

Most §138 cases end this way — the criminal pressure produces a settlement that the parties would never have reached in a pure civil suit.

If the accused is convicted:

• Sentence: imprisonment up to 2 years OR fine up to twice the cheque amount OR both.
• The court typically orders compensation under §357 BNSS to the complainant — usually equal to twice the cheque amount.
• The accused can appeal to the Sessions Court within 30 days; further to the High Court in revision.

If the accused remains absconding or refuses to pay even after conviction, the court can issue a non-bailable warrant and proceed with execution of the fine as a money decree.

+-----------------------------------+--------------------------------------+
| Cheque dishonoured (Day 0)        | Bank issues Cheque Return Memo.      |
|                                   | Bank charges: ₹100-500 / return.     |
+-----------------------------------+--------------------------------------+
| Demand notice deadline (Day 30)   | Must be sent within 30 days of       |
|                                   | dishonour. Lawyer fee: ₹2,000-7,500. |
|                                   | Postal: ₹50-100 (Reg AD).            |
+-----------------------------------+--------------------------------------+
| Notice waiting period (Day 30-45) | 15 days from receipt for drawer to   |
|                                   | pay. No filing in this window.       |
+-----------------------------------+--------------------------------------+
| Filing window (Day 46-75)         | Complaint must be filed within 30    |
|                                   | days of expiry of 15-day notice.     |
|                                   | Court fee: ₹100-500. Lawyer for      |
|                                   | drafting + 1st hearing: ₹5,000-25K.  |
+-----------------------------------+--------------------------------------+
| Cognizance + summons (~Day 90)    | Magistrate examines complainant,     |
|                                   | issues summons. Accused 1st          |
|                                   | appearance: 4-8 weeks later.         |
+-----------------------------------+--------------------------------------+
| Summary trial (§143)              | Statutory target 6 months. Realistic |
|                                   | 2-5 years across Indian courts.      |
|                                   | Lawyer per hearing: ₹2,000-15,000.   |
+-----------------------------------+--------------------------------------+
| Conviction / Acquittal /          | §147 compromise possible at any      |
| Compromise                        | stage. Compromise saves 80% time.    |
+-----------------------------------+--------------------------------------+
| Appeal (Sessions Court)           | Within 30 days of order. Court fee   |
|                                   | ₹50-200. Surety/bail bond.           |
+-----------------------------------+--------------------------------------+
| RTI to PIO Magistrate Court for   | ₹10 by IPO. BPL = free. Reply in     |
| case status / hearing date        | 30 days.                             |
+-----------------------------------+--------------------------------------+

• Notice sent after 30 days from dishonour. This is fatal — there is no condonation of the 30-day notice deadline (Saketh India Ltd. v. India Securities Ltd., 1999 SC). Always count from the day you got the Memo.
• Drawer paid within 15 days. No cause of action arises. Even partial payment within 15 days triggers complications — most courts allow §138 only on the unpaid balance.
• Cheque was a gift, donation, or security with no underlying debt. A cheque given “for safe custody”, as a “blank security” without a determined debt, or as a gift to a relative falls outside §138 (Krishna Janardhan Bhat v. Dattatraya Hegde, 2008 SC; later partly nuanced in Rangappa v. Sri Mohan, 2010 SC — court presumes consideration but the drawer can rebut).
• Cheque post-dated and not yet matured. A post-dated cheque becomes a “cheque” only on its date. Presented before the date, return is treated as “post-dated”, not dishonour.
• Stop payment / signature mismatch — debate. Earlier law treated stop-payment as “outside §138”. The Supreme Court in Goa Plast (P) Ltd. v. Chico Ursula D'Souza, 2003 held that stop payment after issue is dishonour under §138 unless the drawer can show good reason. Signature mismatch by the drawer's own act is also held to attract §138.
• Wrong territorial jurisdiction. Filing at the drawer's address or anywhere other than payee's bank-branch jurisdiction will get the complaint dismissed (Dashrath Rupsingh, 2014).
• Complaint filed after 30 days of expiry of notice. Limitation under §142(b) — courts can condone “for sufficient cause shown” but usually don't.
• Notice issued to a wrong/old address. The drawer can argue non-service; you must show service at the address on the cheque or the last known address.
• Cheque presented after expiry of validity (3 months). Bank will return as “stale” — not dishonour for §138 purposes.

Most §138 cases settle the moment summons is served. Have your lawyer reach out to the accused's counsel for §147 compromise before each hearing. A settlement at hearing 1-3 saves you 4 years of court visits.

Most district courts have a Mediation Centre (under the Mediation Act 2023). The Magistrate can refer your matter for mediation — fee is usually waived; sessions are non-binding but settlement reached is enforceable as a court order. Cheque bounce cases have one of the highest mediation success rates (~60-70% per NALSA data).

If you are convicted but the compensation is too low, or if the accused is acquitted on weak grounds, file a criminal appeal in the Sessions Court within 30 days. Court fee ~₹100-500. Lawyer ₹15,000-1 lakh.

A second appeal/revision lies to the High Court under §438/439 BNSS. Used mainly to challenge legal errors in the Sessions Court order.

• https://pgportal.gov.in → Department of Justice → choose State High Court / district court / e-Courts
• Useful only for administrative grievances (delay in issuing summons, non-listing of matter, court staff misconduct) — not for substantive judicial decisions.

The District Court / Magistrate Court is a public authority under §2(h) of the RTI Act 2005 for its administrative and procedural functions. Each High Court has notified a PIO scheme for the subordinate courts.

RTI helps in §138 cases when:

• Your matter has been pending for months without listing — RTI to PIO at the court for the next listed date, the bench/dealing officer, the file movement history.
• Summons issued but not served — RTI to the Process-Server Section or Nazarat Branch for the status of process delivery.
• The case is ready for judgment but undelivered for months — RTI for the date of last hearing and the “reserved for orders” status.
• Court orders / certified copies are delayed — RTI to the Copying Section PIO asking for the date the application was received and the present stage.
• The accused has been declared absconding and you want status of NBW execution — RTI to the SHO of the police station to which the warrant was sent.

RTI does NOT help in §138 cases when:

• You want to ask why the Magistrate ruled the way they did — judicial decisions are exempt from RTI under §8(1)(b) and the High Court's PIO rules. Use appeal/revision instead.
• You want the court to fast-track your matter — RTI cannot direct the court. File a request for early hearing through your lawyer instead.
• You want the drawer's bank account details / personal financial records — these are third-party personal information exempt under §8(1)(j); the bank's PIO will refuse.
• You want to know what the drawer's lawyer has filed — court records are public; pay the certified copy fee through your lawyer instead, that's faster.
• You want to substitute the criminal complaint or change its content — RTI is not a procedural tool; only an amendment application before the court will do.

For the actual format, see Write an effective RTI application — full template and pair it with the dedicated guide RTI when the police won't register your FIR for parallel evidence-gathering routes.

If your income is low, legal aid is free under the Legal Services Authorities Act 1987 — see How to apply for legal aid / free lawyer. If the underlying transaction was a consumer service (e.g., payment for goods that turned out defective), you may also have a parallel route via Filing a consumer complaint at District / State / National Consumer Commission.

Q. Can I send the §138 notice myself without a lawyer?
Legally yes — the notice can be sent by the payee directly. Practically a lawyer's notice is taken more seriously, and a wrongly drafted self-notice (missing one of the statutory ingredients) can sink the case. Spend ₹2,000-5,000 on a clean lawyer-drafted notice; it's the cheapest insurance you'll buy.

Q. The drawer says he didn't receive the notice. What now?
If you sent it by Registered Post AD to the address on the cheque (or last known address), and the postal AD shows delivery or refusal, the law presumes service (C.C. Alavi Haji v. Palapetty Muhammed, 2007 SC). “Returned unserved” is also deemed service for §138 purposes if you had a valid address and the drawer evaded delivery.

Q. The cheque had no date / was undated. Is §138 still available?
Yes — but only after you fill in the date before presenting. You are deemed authorised holder to complete an inchoate instrument under §20 NI Act. Make sure you fill in a date that is within the original arrangement and within 3 months of presentation.

Q. My cheque bounced for “Drawer's Signature Differs”. Is that §138?
Yes — Laxmi Dyechem v. State of Gujarat, 2012 SC held signature mismatch is dishonour for §138 if the drawer's own act caused it. If the drawer can show genuine bank error (mismatched specimen on file), §138 may not lie — but that's a defence for trial.

Q. Can a company / firm be the accused?
Yes — under §141 NI Act, both the company and every director/officer “in charge of and responsible to the company for the conduct of business” are liable. Name the company plus the signatory of the cheque plus the managing director / authorised signatory in the complaint. Aneeta Hada v. Godfather Travels, 2012 SC requires the company itself to be made an accused — naming only the director is insufficient.

Q. If the drawer is jailed, do I get my money?
Not automatically. The court usually orders compensation under §357 BNSS equal to twice the cheque amount, payable to you. Recovery is then enforced as a fine — if unpaid, the drawer serves additional default sentence and you may have to file a civil execution suit. Most settle before this stage.

Q. The cheque amount is ₹2 lakh. Should I go through §138 or just file a civil suit?
File both — §138 criminal complaint and an Order XXXVII CPC summary suit for civil recovery. The criminal pressure produces settlement; the civil suit gives you a money decree to attach property if the criminal case fails.

Q. The drawer is offering to pay 70% as full settlement. Should I accept?
Most lawyers say yes — a 70% settlement today is worth more than 100% in 5 years' time, factoring in litigation cost, lawyer fees, court visits, and the discount rate. Use §147 to compound the offence formally.

Q. Does §138 apply to e-cheques / RTGS / NEFT failures?
No — §138 strictly applies to physical cheques (and increasingly to digital/image-based cheques under the CTS regime). RTGS / NEFT bounces are not §138 — pursue under contract law (§73 Contract Act 1872) or the relevant payment-system regulator.

Q. Can I withdraw the complaint after filing?
Yes — under §147 NI Act (compoundable offence) you can compromise/withdraw at any stage with court permission. If full payment is made, courts routinely allow withdrawal/quashing.

• How to apply for legal aid / free lawyer (NALSA + DLSA)
• How to file a consumer complaint — District / State / National forums
• RTI when the police won't register your FIR
• Write an effective RTI application — full template
• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory
• RTI forms + state-wise fee chart

Last reviewed: 26 April 2026 by RTI Wiki editorial team. The 75-day clock under §138 is unforgiving — the moment your cheque bounces, set a calendar reminder for Day 25 (notice draft) and Day 60 (complaint draft). Spotted a stale figure? Write to admin@bighelpers.in.