Practice Area

Cheque Bounce (NI Act) Cases

Cheque Bounce (NI Act) Cases

Overview

Understanding This Practice Area

Cheque dishonour disputes under Section 138 of the Negotiable Instruments Act, 1881 require careful attention to statutory notice periods and procedural timelines. Representation is provided for both complainants seeking recovery and accused persons requiring a defence.

Legal Process

How the Matter Proceeds

  1. 01 Verification of the cheque, dishonour memo, and transaction record
  2. 02 Drafting and dispatch of the statutory demand notice
  3. 03 Filing of the complaint before the competent Magistrate within limitation
  4. 04 Representation at trial, including examination of witnesses
  5. 05 Advice on settlement or compounding where appropriate

Who Needs This

Is This Relevant to You?

Payees whose cheques have been dishonoured, and drawers who have received a Section 138 notice or complaint.

FAQs

A demand notice must be issued within 30 days of receiving information of the cheque's dishonour from the bank.

Yes, such matters are often compoundable and can be settled between the parties, including through court-annexed mediation.