Court Assistant
Cheque Bounce Case (NI Act §138)
When a cheque is dishonoured, follow the strict statutory notice procedure before filing a criminal complaint.
Jurisdiction
Magistrate court where the payee bank branch is located (Bhaskaran principle).
Fees
Court fee typically 2% of cheque value, capped state-wise (₹1000–₹25000).
Timeline
Fast-track target of 6 months; typically 1-3 years including appeals.
Required documents
- Original dishonoured cheque and bank return memo
- Copy of the demand notice with postal proof of dispatch
- Proof of underlying debt (invoice, loan agreement)
Step-by-step process
- 1Within 30 days of receiving the bank memo, send a statutory demand notice giving 15 days to pay.
- 2If unpaid after 15 days, file a criminal complaint within 30 days (i.e. by day 45 after notice).
- 3Attend proceedings; the burden is on the drawer to disprove liability under Section 139.