Cheque Bounce and Recovery
Complaints and defence under Section 138 of the Negotiable Instruments Act before the courts at Gurugram, and suits for recovery of money.
A cheque bounce case is strict about time. Each step has a deadline, and a complaint filed out of time can fail however strong the claim. For the drawer, the defence often lies in those same steps, or in whether a legally enforceable debt existed at all.
The timeline
- The cheque is returned unpaid; the bank gives a return memo.
- A legal notice demanding payment is sent within 30 days of the return memo.
- The drawer has 15 days from receiving the notice to pay.
- If the money is not paid, the complaint is filed within one month after those 15 days.
- The court may order interim compensation of up to 20 percent of the cheque amount (Section 143A).
Questions people ask
Where is the complaint filed?
In the court where the payee’s bank branch, where the cheque was presented for collection, is located.
Can a cheque bounce case be settled?
Yes. The offence is compoundable, and many cases end in a settlement at the first hearings or in mediation.
Speak to Amarjeet Yadav
Book an appointment at the Gurugram office or the court chamber, by video or by phone. Urgent matters: call or WhatsApp.