A bounced cheque can become a criminal complaint under Section 138 of the Negotiable Instruments Act, and the process runs on strict deadlines. Whether you issued the cheque or received it, acting within the time limits matters. We help you understand the notice, the timeline and the options, including settlement.
Situations where we can help
- Your cheque was returned unpaid and the payee has sent a legal notice
- A cheque you received has bounced and you want to know the next step
- You received a summons from a magistrate court in a cheque bounce complaint
- You want to settle the amount and close the matter
The Section 138 timeline
1
Cheque returned
The bank returns the cheque unpaid and issues a return memo.
2
Demand notice
The payee has 30 days from the memo to send a written demand.
3
15 days to pay
The person who issued the cheque has 15 days from receiving the notice.
4
Court complaint
If unpaid, a complaint can be filed within one month after the 15 days end.
How Secure Settle helps with cheque bounce cases
- Read the notice with you and check the dates, amount and grounds stated
- Explain the timeline from the bank return memo to the court complaint
- Guide you on a reply to the notice, and on payment or settlement options
- Support negotiation with the other party to reach a written settlement
- Connect you with an advocate for court appearances where needed
What to do right now
- Note the date you received the notice. The 15-day payment window runs from it.
- Do not ignore the notice, even if you believe the claim is wrong. Reply in writing.
- Keep the bank return memo, the cheque copy and all related messages.
- If you settle, record it in writing and ask for the original cheque back.
Frequently asked questions
Yes. If the conditions of Section 138 are met, a dishonoured cheque is a punishable offence, with imprisonment of up to two years, a fine of up to twice the cheque amount, or both. Most cases can still be settled between the parties.
The payee must send a written demand within 30 days of receiving the bank memo. The person who issued the cheque then has 15 days from receiving that notice to make the payment. A complaint can be filed in court only if payment is not made within that time.
Yes. The offence is compoundable, which means the parties can settle, including after the case has started, with the court recording the settlement.
This page is general information and not legal advice. Outcomes depend on the facts of each case and cannot be guaranteed.