A cheque bounce, also known as cheque dishonour, occurs when a bank returns a cheque unpaid — due to insufficient funds, account closure, signature mismatch, or other reasons. In India, cheque bounce is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881, punishable with imprisonment up to two years, a fine up to twice the cheque amount, or both.
Why You Must Act Immediately
Cheque bounce cases involve strict statutory deadlines. Missing even one deadline permanently damages your case and extinguishes your legal right to file a complaint.
Critical Deadlines You Cannot Miss
Present the cheque within 3 months of the date written on it.
Send a legal demand notice within 30 days of receiving the bank's return memo.
The drawer has 15 days to make payment after receiving your notice.
File the criminal complaint within 30 days after the 15-day payment window closes.
Our Cheque Bounce Services
For Complainants (Cheque Holders): We draft and send a legally valid demand notice the same day, file the criminal complaint under Section 138, pursue conviction, and recover the cheque amount with interest and costs.
For Accused (Drawer of Cheque): We analyse the complaint for technical defects, file quashing petitions before the Madras High Court where warranted, negotiate favourable settlements, and provide strong defence at trial.
Corporate Cheque Bounce: High-value matters for businesses, NBFCs, and banks involving multiple cheques and parties — handled with full expertise under Section 141 NI Act.
Key Legal Provisions
Section 138 — Dishonour of cheque for insufficiency of funds. Section 141 — Liability of company directors. Section 143A — Interim compensation of up to 20% during trial. Section 148 — Deposit of 20% on appeal.
Can a Cheque Bounce Case Be Settled Out of Court?
Yes. The majority of cheque bounce cases in Chennai are settled through negotiation — the accused pays the full cheque amount plus agreed compensation and the complainant withdraws the complaint. This is often faster and more practical than a full trial.
📞 Contact a Cheque Bounce Lawyer Today: +91 97104 21215 | Adv. B. Sivasubramanian, Chennai