Cheque returned unpaid? The law gives you a short window — use it
Demand notices, Section 138 complaints and recovery for dishonoured cheques — for payees and for the defence.
What this covers
- Statutory demand notice (Section 138)
- Complaint filing and court representation
- Recovery follow-through
- Defence against cheque bounce complaints
- Settlement negotiation
- Advice on limitation and deadlines
The problem
A cheque you were counting on has come back unpaid — and every week you wait weakens your case. The law sets strict deadlines: miss them and the strongest remedy is gone.
How we solve it
The statutory demand goes out inside the period allowed, the complaint follows if payment still does not come, and press for recovery. If you have received a notice instead, we prepare your defence just as carefully.
Why clients choose us for this
How it works
- 1
Bring the papers
Cheque, return memo and any correspondence.
- 2
Notice
Statutory demand notice sent within the time limit.
- 3
Complaint
Filed if payment does not come in the notice period.
- 4
Recovery
Judgment, settlement or compounding — whichever pays you.
Documents to bring
- The dishonoured cheque
- Bank return memo
- Proof of the underlying transaction (invoice, loan record, agreement)
- Any correspondence with the other party
Photograph the cheque and the memo and send them now — the dates decide what is still open.
Send documents on WhatsAppCheque Bounce Cases in Gujarat
A dishonoured cheque is one of the few commercial wrongs in India that is both a criminal offence and a debt. Section 138 of the Negotiable Instruments Act makes it an offence to issue a cheque that is returned unpaid for insufficient funds or because payment was stopped, where the cheque was given to discharge a legally enforceable debt. That last requirement matters — a cheque given as a security or a gift does not attract the section in the same way.
The procedure is unforgiving about time, and it is unforgiving in a specific way: each step opens a window, and a window missed cannot be reopened. The dishonour memo starts the clock; a written demand must follow within the period allowed; the drawer then has a fixed period to pay; and only after that period expires does a further, short window open in which the complaint must be filed. Miss any of them and a complete case becomes a dead one.
Jurisdiction was settled by amendment some years ago and now generally follows the branch of the bank where the payee presented the cheque, which is usually convenient for the person who is owed money. There is also a civil route running alongside — a summary suit for recovery — and the two are not alternatives. Criminal proceedings apply pressure; the civil suit is what produces a decree that can be executed against assets.
The procedure, step by step
- 01
Secure the return memo
The bank's dishonour memo is the document the whole case is built on, and the date on it starts the limitation running. We take the memo, the cheque itself, and the record of what the cheque was for — invoice, ledger, loan document, agreement. Where the underlying debt is poorly evidenced, that weakness is addressed now rather than in cross-examination.
- 02
Issue the statutory demand
A written notice demanding payment goes to the drawer within the period the section allows, sent so that service can be proved — registered post with acknowledgement, and a courier record alongside it. The notice must state the amount and demand payment of the cheque amount specifically. Notices that wander into other grievances are the ones that get attacked.
- 03
Let the payment period run
The drawer has a fixed period from receiving the notice to pay. Filing before it expires is premature and the complaint will not stand; waiting too long after it expires is fatal to it. Many defaulters pay at exactly this point, which is the outcome we would prefer for you.
- 04
File the complaint
If payment does not come, the complaint is filed in the competent Magistrate's court within the window that then opens, with the cheque, the memo, the notice, the postal proof and the evidence of the debt. The complainant's sworn statement is recorded and process issues to the accused.
- 05
Trial, and pressure along the way
These are tried summarily, and the Act allows the court to direct interim compensation to the complainant while the case runs and, on appeal against conviction, to require a deposit before the appeal proceeds. Those provisions materially change the negotiating position, and they are used.
- 06
Recovery in parallel
Where the sum justifies it we file a summary suit for recovery alongside the complaint. Conviction under the section can carry compensation, but a civil decree is the instrument that reaches the debtor's property. Which combination to run depends on the amount and on what the debtor actually owns.
What you will need
Essential
- The original dishonoured cheque
- The bank's return memo, with its date
- Proof of the debt — invoice, ledger, agreement or loan record
- Your bank statement showing presentation
For the notice and complaint
- Complete address of the drawer
- Registered post receipt and acknowledgement, or the returned envelope
- Courier tracking record
- Any correspondence in which the debt is admitted
What the case costs to run
Costs fall into court fees and professional fees. The civil recovery suit is priced on the amount claimed; the criminal complaint is not.
| Court fee on the section 138 complaint | Quoted for your matter in writing |
|---|---|
| Court fee on a summary suit | Quoted for your matter in writing |
| Notice and service costs | Registered post, courier and drafting — modest, and quoted before we send |
| Interim compensation available | Quoted for your matter in writing |
How long it takes
- Notice drafted and dispatched
- 1–2 working days from instruction
- Statutory period for the drawer to pay
- On confirmation
- Complaint filed and process issued
- Within the statutory window once the period expires
- Summary trial to conclusion
- On confirmation
The step where delay does the most damage.
Many matters settle once process is served and interim compensation is on the table.
Where this goes wrong
Presenting the cheque again and again
Re-presentation is permissible, but people lose track of which memo they acted on, and the notice ends up referencing the wrong dishonour. Decide on one presentation and build the case on that memo.
Sending an informal reminder instead of the notice
A WhatsApp message asking for payment is not the statutory demand. The section requires a written notice, in the required terms, within the period allowed, and capable of being proved served. Anything less and the complaint does not get off the ground.
No paper behind the cheque
The defence in almost every one of these cases is that the cheque was not issued for a legally enforceable debt. Invoices, ledgers, delivery records and any written acknowledgement are what defeat that, and they are far easier to assemble now than after the accused has run it.
Letting the clock run while you negotiate
Defaulters ask for time, and the periods keep running while they do. Negotiate by all means — but issue the notice and file within time, because a case allowed to lapse removes the only pressure that was working.
Common questions
Section 138 is unforgiving about timing. These are the questions to ask this week.
Call NowVery soon — the demand notice must be sent within 30 days of the bank's return memo. Bring the cheque and memo to us as early as you can so no deadline is missed.
Often needed alongside this
Cheque returned unpaid? The law gives you a short window — use it
Notice out within days, complaint filed in time, and recovery pursued alongside it.