Negotiable Instruments Act, 1881 — Section 138
Creates criminal liability for dishonoured cheques — punishable with imprisonment up to 2 years or fine up to twice the cheque amount or both.
Recover your money.Before the deadline closes.
A confidential consultation with a Section 138 NI Act specialist — understand your demand notice obligations, criminal complaint timelines, and the fastest path to full recovery.
Section 138 NI ActDemand NoticeCriminal ComplaintMoney Recovery
₹99–₹299
Per Session
30 Days
Statutory Deadline
100%
Confidential
What we cover in the consultation
A time-critical session covering every mandatory step — from the day of dishonour to criminal complaint filing and recovery.
Demand Notice Requirements
Understand the exact format, content, and delivery requirements for a valid Section 138 demand notice — and the strict 30-day window from dishonour to send it.
Criminal Complaint Filing
Learn the process for filing a criminal complaint under Section 138 in the magistrate court — jurisdiction, supporting documents, and what to expect at the first hearing.
Recovery Strategy
Assess the fastest recovery route — criminal proceedings, civil suit, or negotiated settlement — based on the amount, your relationship with the drawer, and their financial position.
Timeline & Deadlines
Get a clear breakdown of every statutory deadline: 30 days to send notice, 15 days for the drawer to pay, 30 days to file complaint. Missing any deadline forfeits your legal remedy.
The Section 138 Process
A strict statutory timeline — every step must happen within a defined window or the right to prosecute is lost.
01
Bank Returns the Cheque
The bank dishonours the cheque and issues a memo stating the reason — insufficient funds, account closed, or stop payment. This triggers the 30-day clock.
02
Send Demand Notice (Day 1–30)
A written demand notice must be sent to the drawer within 30 days of receiving the bank's dishonour memo — by registered post to their last known address.
03
Drawer Gets 15 Days to Pay
The drawer has 15 days from receipt of the notice to make full payment. If they pay, the matter ends. If not, your right to file a criminal complaint arises.
04
File Criminal Complaint (Within 30 Days)
If no payment is made within 15 days, you must file a criminal complaint under Section 138 in the magistrate court within 30 days of the expiry of the notice period.
05
Court Proceedings & Recovery
The magistrate issues summons. The case proceeds to trial or negotiated settlement. A conviction under Section 138 carries imprisonment up to 2 years and/or a fine of twice the cheque amount.
Legal Framework
Cheque bounce is a criminal offence under Indian law — providing a powerful recovery mechanism that motivates quick payment.
Code of Criminal Procedure / BNSS 2023
Governs the filing of the criminal complaint, summons to the accused, trial procedure, and sentencing in cheque bounce cases.
NI Act Amendment 2018
Introduced interim compensation of 20% of the cheque amount to the complainant at the time of summoning — providing immediate partial relief.
Dashrath Rupsingh Rathod v. State of Maharashtra (2014)
Landmark ruling clarifying that cases must be filed only where the cheque was delivered for collection — preventing forum shopping by complainants.
Client Success Stories
“My supplier gave me a cheque that bounced. I had no idea about the 30-day deadline. The consultation explained everything — I sent the notice the same day and recovered the full amount within 3 weeks of the complaint being filed.”
RK
Rahul K.
Rs 85,000 Recovery“A client bounced a cheque for professional fees. The lawyer explained my options clearly — criminal complaint vs. civil suit — and helped me pick the right strategy. The matter was settled before the first hearing.”
PS
Priya S.
Business DisputeFrequently Asked Questions
If you missed the 30-day window from receiving the bank's dishonour memo, you lose the right to prosecute under Section 138. However, you can still file a civil suit to recover the money — the consultation will advise on the best alternative route.
Section 138 applies only to cheques given for discharge of a legally enforceable debt or liability. A security cheque can still attract Section 138 liability if it was given against a valid underlying transaction — the consultation will assess this based on your specific facts.
Yes. You can file a civil suit for recovery of the cheque amount along with interest and costs. Some creditors prefer a civil suit when the relationship is ongoing or the criminal route seems disproportionate. Both routes are discussed in the consultation.
The 2018 amendment allows the magistrate to order the accused to pay 20% of the cheque amount as interim compensation at the time of summoning. This must be paid within 60 days and is refunded if the accused is acquitted.