A cheque bounced: what to do and by when

A plain language guide. Follow the steps in order.

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General information, not legal advice. This guide explains the usual steps in plain words. Every case has its own facts, and the law and the rules change. For a serious matter, speak to a lawyer. If you cannot afford one, you may get one free: call 15100. Last checked November 2026.

Three dates decide the case: 30 days for the notice, 15 days for payment, one month to file.

What to do, step by step

Present the cheque within its validity (3 months from the date on it). When it bounces, the bank gives you a return memo stating the reason.
Within 30 days of getting that memo, send a written demand notice to the person who gave the cheque, asking for the amount within 15 days. Send it by registered post and email, and keep the proof of delivery.
Wait for 15 days from the date they receive the notice. If they pay, the matter ends.
If they do not pay, file a criminal complaint before the Magistrate within one month after those 15 days end. Miss this window and the court can accept a late complaint only for sufficient cause.
The court can order the accused to pay interim compensation of up to 20 percent of the cheque amount early in the case, and an appeal usually needs a deposit of at least 20 percent.
Many such cases settle in court or in Lok Adalat. If the money is paid with the court's permission the case can be closed.

Where to go

Court of the Judicial Magistrate in the area where the branch of your bank holding your account is
A lawyer is usually needed to draft the notice and complaint

What to carry

Original cheque
Bank return memo
Copy of the legal notice and proof of posting and delivery
Proof of the debt: agreement, messages, receipts, bank transfers

Time limits

30 days from the return memo: send the notice.
15 days from receipt of the notice: the other side can pay.
One month after those 15 days: file the complaint.

What the law says

Negotiable Instruments Act 1881, section 138: offence of dishonour. Up to 2 years in jail, or a fine up to twice the cheque amount, or both
NI Act section 142: complaint within one month of the cause of action
NI Act sections 143A and 148: interim compensation and deposit on appeal

If it does not work

If the notice is returned unserved, a lawyer can advise on whether it is treated as delivered.
A civil suit for recovery of money is a separate option, within 3 years of the debt falling due.

Free help

Free legal aid applies if you qualify: women, SC and ST, low income. Call 15100.

Sources

Online fraud or money lost: first hour checklist Consumer complaint: defective goods, poor service, refunds Bank, loan or wallet problem: how to escalate

Section numbers are from the Bharatiya Nagarik Suraksha Sanhita (BNSS), the Bharatiya Nyaya Sanhita (BNS) and other Acts, with the old number in square brackets. For events before 1 July 2024 the old law (CrPC, IPC) applies. Spotted a mistake? Corrections are welcome.