Cheque bounce is one of the most common legal disputes in Ranchi’s business community. If someone has given you a cheque that has bounced, you have strong legal remedies under Section 138 of the Negotiable Instruments Act (NI Act). Advocate Ankit Burman, a leading civil lawyer in Ranchi, explains your rights and the legal process.
What is a Cheque Bounce Case Under Section 138 NI Act?
When a cheque is returned unpaid by the bank due to “insufficient funds,” “payment stopped by drawer,” or “exceeds arrangement,” it constitutes a criminal offence under Section 138 NI Act. The punishment can be imprisonment up to 2 years or fine up to twice the cheque amount, or both.
Essential Conditions for Filing a Cheque Bounce Case
- The cheque must have been issued for a legally enforceable debt
- The cheque must have been presented to the bank within 3 months of its date
- The bank must have returned it unpaid
- You must send a legal demand notice within 30 days of receiving the dishonour memo
- The drawer must fail to pay within 15 days of receiving the notice
- You must file the complaint within 30 days of the expiry of the 15-day notice period
Step-by-Step Procedure to File Cheque Bounce Case in Ranchi
Step 1: Collect the Dishonour Memo from Your Bank
Obtain the bank’s memo stating the reason for return of the cheque.
Step 2: Send Legal Demand Notice
Send a legal demand notice by registered post or speed post to the drawer’s address demanding payment within 15 days.
Step 3: Wait for 15 Days
If the drawer fails to pay within 15 days of receiving the notice, you can proceed with filing the complaint.
Step 4: File Criminal Complaint Before Magistrate Court, Ranchi
File a complaint under Section 138 NI Act before the Chief Judicial Magistrate or Judicial Magistrate in Ranchi within the limitation period.
Step 5: Trial
The court conducts trial and if proven, can award imprisonment, fine, and order payment of the cheque amount with interest.
Can I Claim Interest on the Cheque Amount?
Yes. Under Section 357 CrPC, courts can direct payment of compensation including reasonable interest on the cheque amount as part of the sentence.
Civil Recovery Alongside Section 138 Case
In addition to criminal proceedings under Section 138, you can also file a civil suit for recovery of the cheque amount with interest.
Contact Cheque Bounce Lawyer in Ranchi
📞 +91 7384818188
📍 Near Civil Court, Ranchi – 834001