Cheque bounce (Section 138)
ಸಹ ಕರೆಯಲಾಯಿತು: dishonour of cheque, Section 138
The offence of issuing a cheque for a debt that is returned unpaid, and not paying within 15 days of a legal notice. It is punishable under Section 138 of the Negotiable Instruments Act, 1881.
When a cheque given to pay a debt is dishonoured, the payee can recover the money through a civil suit and can also prosecute the drawer under Section 138 of the Negotiable Instruments Act, 1881, which makes it a criminal offence if the steps below are followed.
The steps and deadlines
- Present the cheque within its validity (three months from its date, under RBI rules).
- Send a written demand notice to the drawer within 30 days of receiving the bank's return memo.
- Wait 15 days from the drawer's receipt of the notice for payment.
- If not paid, file the complaint before the Magistrate within one month after the 15 days end (Section 142). Delay can be condoned for sufficient cause.
Punishment and settlement
The offence is punishable with imprisonment up to two years, or a fine up to twice the cheque amount, or both. The court can order interim compensation of up to 20 per cent of the cheque amount (Section 143A). The case can be compounded at any stage (Section 147).
Debt must exist
Section 138 applies only to a cheque given to discharge a legally enforceable debt or liability. A cheque given as a gift or for an illegal purpose is not covered.
Draft a cheque bounce notice, and read cheque bounce under Section 138: the notice and process.
ಕೆಳಗಿನ ಮೂಲಗಳ ವಿರುದ್ಧ ಪರಿಶೀಲಿಸಲಾಗಿದೆ ನವೆಂಬರ್ 7, 2026 IST. ಭಾರತೀಯ ಕಾನೂನಿನ ಬಗ್ಗೆ ಸಾಮಾನ್ಯ ಮಾಹಿತಿ, ನಿಮ್ಮ ಪ್ರಕರಣಕ್ಕೆ ಕಾನೂನು ಸಲಹೆಯಲ್ಲ.
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