Cheque bounce cases under Section 138 of the Negotiable Instruments Act carry serious consequences including imprisonment and compensation. Learn the legal process, defenses, and strategic considerations for both complainants and accused.
Section 138 of the Negotiable Instruments Act, 1881 makes the dishonour of a cheque a criminal offence punishable with imprisonment up to two years or fine up to twice the cheque amount, or both.
The complainant must follow a strict procedure: send a legal demand notice within 30 days of the dishonour memo, wait 15 days for payment, and file the complaint within one month of the expiry of the notice period. Non-compliance with these timelines is fatal to the case.
Recent amendments (2018) introduced Section 143A allowing courts to direct the accused to pay interim compensation up to 20% of the cheque amount. The Supreme Court has also clarified various aspects including the territorial jurisdiction and the concept of legally enforceable debt.
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Cheque Bounce Lawyer in Delhi NCR →The Chambers of Adv. Akshay Aggarwal, Rohini, New Delhi · +91 98713 52356
Disclaimer: This article is for general information only and does not constitute legal advice. For advice on your specific matter, please consult a qualified advocate.