✅ Step-by-Step Process of a Cheque Bounce Case in India
Cheque bounce cases in India are governed by Section 138 of the Negotiable Instruments Act, 1881. This guide explains each step of the process, from cheque dishonor to legal remedies.
📌 Step 1: Presentation of the Cheque
The cheque must be presented to the bank within 3 months from the date written on the cheque.
📌 Step 2: Dishonor of Cheque
If the cheque is dishonored, the bank issues a Cheque Return Memo indicating the reason (e.g., "Insufficient Funds").
📌 Step 3: Legal Notice to the Drawer
The payee must send a legal notice within 30 days of dishonor, demanding payment within 15 days.
- Date of cheque
- Demand for payment within 15 days
📌 Step 4: Wait for 15 Days
If the drawer does not pay within 15 days of receiving the legal notice, a criminal complaint can be filed.
📌 Step 5: Filing of Complaint in Court
The complaint must be filed within 30 days from the expiry of the 15-day notice period before a Judicial Magistrate First Class (JMFC) or Metropolitan Magistrate.
- Original cheque
- Cheque return memo
- Copy of legal notice
- Proof of dispatch (postal receipt/courier)
- Complaint and affidavit
📌 Step 6: Court Summons to Accused
If the court finds prima facie evidence, it issues summons to the accused.
📌 Step 7: Appearance of Accused & Plea
The accused appears and pleads guilty or not guilty. If not guilty, the case proceeds to trial.
📌 Step 8: Trial Process
- Complainant’s evidence and cross-examination
- Statement of accused (Section 313 CrPC)
- Defense evidence (if any)
- Final arguments
📌 Step 9: Judgment
If the accused is convicted, the court may impose:
- Imprisonment up to 2 years
- Fine up to twice the cheque amount
- Or both
📌 Step 10: Appeal
The aggrieved party can file an appeal within 30 days of the judgment before the Sessions Court.
✅ Key Points to Remember:
- Cheque must be issued for a legally enforceable debt/liability
- Strict adherence to timelines is essential
- Complaint jurisdiction lies where cheque was presented, returned, or notice sent
⚖️ Supreme Court Guidelines (Recent)
- Cheque bounce trials should be completed within 6 months
- Court may direct parties to pre-litigation mediation in commercial matters
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