Cheque Bounce Lawyer in Delhi | Section 138 NI Act Expert Attorneys
Why Choose Us?
- Expert in Section 138 NI Act cases
- Quick legal notice drafting (24-48 hours)
- High success rate in recovery
- Both criminal & civil remedies
Understanding Cheque Bounce
| Term | Definition |
|---|---|
| Drawer | Person who writes/issues the cheque |
| Payee | Person to whom the cheque is issued |
| Drawee | Bank that cashes the cheque |
Cheque bounce (dishonour of cheque) occurs when a cheque presented for payment is not honored by the bank. This is a punishable offense under the Negotiable Instruments Act, 1881.
Reasons for Cheque Bounce
| Reason | Description | Covered Under Sec 138? |
|---|---|---|
| Insufficient Funds | Account lacks balance to cover cheque amount | Yes |
| Exceeds Arrangement | Amount exceeds overdraft limit | Yes |
| Signature Mismatch | Signature doesn’t match bank records | Yes |
| Account Closed | Account closed before cheque presented | Yes |
| Stop Payment | Drawer instructs bank to stop payment | Case-dependent |
| Incorrect Date | Post-dated or stale cheque | No |
| Mutilation | Cheque is torn or damaged | No |
| Overwriting | Alterations without authentication | No |
Legal Framework: Section 138 NI Act
Key Provisions
| Aspect | Details |
|---|---|
| Act | Negotiable Instruments Act, 1881 |
| Section | 138 |
| Offense Type | Criminal (compoundable) |
| Punishment | Up to 2 years imprisonment |
| Fine | Up to twice the cheque amount |
| Nature | Bailable, Non-cognizable |
Important Conditions for Section 138
- Cheque must be issued for discharge of debt or liability
- Cheque must be presented within validity period (3 months)
- Cheque must be returned unpaid by the bank
- Legal notice must be sent within 30 days of return memo
- Complaint must be filed within 30 days of notice period expiry
Step-by-Step Legal Process
| Step | Action | Timeline |
|---|---|---|
| 1️⃣ | Cheque Return Memo | Bank issues memo stating reason |
| 2️⃣ | Send Legal Notice | Within 30 days of return memo |
| 3️⃣ | Wait for Payment | 15 days from notice receipt |
| 4️⃣ | File Complaint | Within 30 days after 15-day period |
| 5️⃣ | Court Summons | Court issues summons to drawer |
| 6️⃣ | Trial & Evidence | Both parties present case |
| 7️⃣ | Judgment | Court delivers verdict |
Critical Timelines: Missing any deadline can result in case dismissal. Our lawyers ensure strict compliance with all timelines.
Legal Notice Requirements
The demand notice must clearly state:
| Requirement | Description |
|---|---|
| Cheque Details | Number, date, amount, bank name |
| Presentation Date | When cheque was presented |
| Return Reason | As mentioned in return memo |
| Demand | Payment within 15 days |
| Consequence | Legal action if not paid |
Civil vs Criminal Remedies
Criminal Remedy (Section 138 NI Act)
| Aspect | Details |
|---|---|
| Court | Magistrate Court |
| Punishment | Up to 2 years imprisonment |
| Fine | Up to twice cheque amount |
| Timeline | 1-3 years typically |
Civil Remedy (Order 37 CPC)
| Aspect | Details |
|---|---|
| Court | Civil Court |
| Relief | Recovery of cheque amount |
| Additional | Interest + Costs |
| Timeline | 6 months - 2 years |
Pro Tip: You can pursue both civil and criminal remedies simultaneously for maximum recovery.
Documents Required
| Document | Purpose |
|---|---|
| Original Cheque | Primary evidence |
| Cheque Return Memo | Proof of dishonour |
| Copy of Legal Notice | Proof of demand |
| Postal Receipts | Proof of notice delivery |
| Evidence Affidavit | Sworn statement |
| Bank Statement | Transaction proof |
Jurisdiction Rules
As per Dashrath Rup Singh vs State of Maharashtra (Supreme Court):
| Scenario | Jurisdiction |
|---|---|
| Cheque presented at bank | Where bank is located |
| Account holder’s location | Not relevant |
| Drawer’s residence | Not the determining factor |
The case must be filed where the cheque was presented for encashment.
Defenses Against False Cases
If you’re wrongly accused in a cheque bounce case:
| Defense | Application |
|---|---|
| No Legal Debt | Cheque was security, not for debt |
| Cheque Given Under Duress | Signed under threat/pressure |
| Material Alteration | Cheque was tampered |
| Limitation Period | Complaint filed after deadline |
| No Valid Notice | Notice not properly served |
Our Services
| Service | Description |
|---|---|
| Legal Consultation | Case assessment & advice |
| Notice Drafting | Demand notice preparation |
| Court Filing | Complaint drafting & filing |
| Court Representation | Full trial representation |
| Settlement Negotiation | Out-of-court settlement |
| Execution | Enforcement of judgment |
Frequently Asked Questions
General Questions
Q: What is cheque bounce or dishonour of cheque?
A: Cheque bounce occurs when a bank refuses to honor a cheque due to insufficient funds, signature mismatch, account closure, or other reasons. It’s a punishable offense under Section 138 of the Negotiable Instruments Act.
Q: Is cheque bounce a criminal offense?
A: Yes, under Section 138 of NI Act, cheque bounce is a criminal offense punishable with imprisonment up to 2 years or fine up to twice the cheque amount, or both.
Q: What is the time limit to file a cheque bounce case?
A: You must send legal notice within 30 days of receiving the return memo. If payment isn’t made within 15 days of notice, file complaint within 30 days after that.
Process Questions
Q: How long does a cheque bounce case take?
A: Typically 1-3 years for criminal cases. Civil recovery under Order 37 CPC can be faster (6 months - 2 years).
Q: Can I file both civil and criminal cases?
A: Yes, you can simultaneously pursue criminal proceedings under Section 138 NI Act and civil recovery under Order 37 CPC.
Q: What happens if the drawer pays after notice?
A: If payment is made within 15 days of notice, no case can be filed. The matter is considered settled.
Cheque Bounce Lawyer Questions
Q: How much does a cheque bounce lawyer in Delhi charge?
A: Fees vary based on cheque amount and case complexity. Contact us for a consultation and quote.
Q: Do I need a lawyer for cheque bounce case?
A: While not mandatory, a cheque bounce lawyer ensures proper legal notice drafting, timely filing, and effective court representation, significantly improving your chances of recovery.
Q: Can a cheque bounce case be settled out of court?
A: Yes, Section 138 cases are compoundable and can be settled at any stage with mutual consent.
Why Hire a Cheque Bounce Lawyer?
| Benefit | Description |
|---|---|
| Legal Expertise | Deep knowledge of NI Act provisions |
| Timeline Compliance | Ensures no deadlines are missed |
| Proper Documentation | Legally sound notice & complaint |
| Court Experience | Effective cross-examination & arguments |
| Negotiation Skills | Better settlement outcomes |
| Recovery Focus | Maximum compensation for you |
Related Resources
Contact Us
Our expert cheque bounce lawyers in Delhi can help you:
- Recover Your Money: Through legal proceedings
- Defend False Cases: If wrongly accused
- Send Legal Notice: Quick turnaround
Need Help with a Cheque Bounce Case? Contact us today for a consultation. We’ll assess your case and provide the best legal strategy for recovery.
Disclaimer: This information is for general guidance only. Each cheque bounce case has unique circumstances. Please consult with our lawyers for advice specific to your situation.
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