Short answer: If you have received a cheque bounce notice (chek bounce ka kanooni notice) under Section 138 of the Negotiable Instruments Act, 1881, you have 15 days from the date you receive it to pay the cheque amount. If you pay within those 15 days, no offence is made out. If you dispute the debt, send a written reply within the same window putting your defence on record. If you are the payee, the notice must go out within 30 days of the bank’s return memo, and the complaint must be filed within one month after the 15 days end. This guide walks both sides through each window, as it applies in Ranchi and across Jharkhand.
The Section 138 timeline at a glance
A cheque bounce case is a chain of strict deadlines. Missing one can end the case for the payee, or cost the drawer the chance to settle cheaply.
| — | — | — | — |
|---|---|---|---|
| Present the cheque | Within its validity (banks treat cheques as valid for 3 months from the date on them) | Sec 138(a) NI Act | Payee |
| Bank returns cheque with memo | On dishonour (“funds insufficient”, “exceeds arrangement”, “account closed”, “payment stopped”) | Sec 138 | Bank |
| Send legal demand notice | Within 30 days of receiving the return memo | Sec 138(b) | Payee |
| Payment window | 15 days from the drawer’s receipt of the notice | Sec 138(c) | Drawer |
| File criminal complaint | Within 1 month after the 15-day window expires (delay can be condoned for sufficient cause) | Sec 142(1)(b) | Payee |
| Interim compensation (if ordered) | Up to 20% of the cheque amount, payable within 60 days | Sec 143A | Drawer |
| Deposit on appeal (if convicted) | At least 20% of fine/compensation, usually required | Sec 148 | Drawer |
The offence carries imprisonment of up to two years, or a fine of up to twice the cheque amount, or both. Because the remedy is criminal, Section 138 cases run in the court of the Judicial Magistrate, not a civil court.
I received a cheque bounce notice. What should I do in the 15 days?
The 15-day window is the most important period in the entire case for a drawer. Use it deliberately.
Step 1: Note the date you received the notice
The 15 days run from the date of receipt, not the date printed on the notice. Keep the envelope, the postal tracking record or the courier slip. If the notice was refused or returned “unclaimed” at your correct address, courts usually treat it as served, so avoiding the postman does not help.
Step 2: Check whether the notice is legally valid
Before deciding anything, check these points with your lawyer:
- Was the cheque presented within its validity period?
- Was the notice sent within 30 days of the bank’s return memo?
- Does the notice clearly demand payment of the cheque amount? A notice that demands only a different or vague sum can be challenged.
- Is it addressed to the correct person? For a company cheque, are the directors named actually in charge of its business (Section 141)?
Step 3: Decide: pay, settle or contest
If the debt is genuine, paying the cheque amount within 15 days is the cleanest exit: no cause of action arises and no complaint can be filed. Pay through a traceable mode (bank transfer or demand draft) and get a written acknowledgement that the amount is received in full settlement of that cheque.
If you cannot pay the full sum, propose a written settlement with an instalment schedule. Any settlement should state what happens to the cheque and that no complaint will be filed once payment is complete.
If you dispute the liability, send a reply.
How to reply to a cheque bounce notice
There is no legal requirement to reply, and not replying is not an offence. But a reasoned reply (notice ka jawab) sent within the 15 days puts your version on record before any complaint is filed, and it is often the first document a magistrate reads alongside the complaint. A good reply:
- Is sent through a lawyer by registered post or speed post, with tracking preserved.
- Denies liability specifically, not with a blanket denial. State why the amount is not owed.
- Explains the real purpose of the cheque if it was not for a debt (for example, it was issued for a deal that never went through).
- Records any payments already made, with dates and modes.
- Points out defects in the notice (wrong amount, beyond 30 days, wrong addressee).
- Avoids admitting the debt in passing. Careless phrases like “I will pay when I can” can be read as admissions.
- Is consistent with what you will say at trial. Contradictions between your reply and your later evidence weaken your defence.
Defences that courts actually consider
Section 139 of the NI Act creates a presumption that the cheque was issued for a debt or liability. In Rangappa v. Sri Mohan (2010), the Supreme Court held that this presumption includes the existence of a legally enforceable debt. The drawer can rebut it, but does not have to prove the defence beyond doubt; it is enough to raise a probable defence through evidence or by exposing weaknesses in the complainant’s case.
Defences commonly raised include:
- No legally enforceable debt: the cheque was not given against any existing liability.
- Payment already made: the amount was paid, partly or fully, before presentation.
- Defective notice or late complaint: a strict-deadline failure on the payee’s side.
- Material alteration: the amount, date or payee name was changed without consent.
- Not in charge of the company: for directors, under Section 141.
Some common beliefs are not defences. “Payment stopped” and “account closed” dishonours are covered by Section 138 just like insufficient funds. On “security cheques”, the Supreme Court in Sripati Singh v. State of Jharkhand (2021), a case arising from Jharkhand, held that if the loan or liability has become due on the date the cheque is presented and remains unpaid, dishonour of a cheque given as security can still attract Section 138.
For the payee: how and where to file in Jharkhand
If the 15 days pass without payment, the cause of action arises the next day. The complaint must be filed within one month. Under Section 142(2), as amended in 2015, if you deposited the cheque in your own bank account, the complaint is filed in the court within whose area your bank branch is located. So if you bank in Ranchi, the case is filed in Ranchi even if the drawer lives in Dhanbad or Patna.
Documents usually needed:
- Original dishonoured cheque.
- Bank return memo.
- Copy of the legal notice and postal receipts / tracking report / acknowledgement.
- Any reply received.
- Documents proving the underlying debt (agreement, invoices, ledger, bank transfers, messages).
- Affidavit evidence of the complainant, as required by the court.
- For companies, a board resolution or authorisation for the person filing.
Section 143 provides for summary trial, with the law aiming to conclude the trial within six months, although in practice timelines vary with court workload.
Interim compensation under Section 143A
Since 2018, the trial court may order the accused to pay interim compensation of up to 20% of the cheque amount: in a summary or summons trial, once the accused pleads not guilty; in other cases, on framing of charge. It must be paid within 60 days, extendable by 30 days. If the accused is later acquitted, the complainant must refund it with interest.
This power is not automatic. In Rakesh Ranjan Shrivastava v. State of Jharkhand (2024), the Supreme Court held that Section 143A is discretionary. The court must look prima facie at the merits of both sides, the plausibility of the defence and the accused’s financial capacity, and give brief reasons. For a drawer with a genuine defence, this is the point to argue against interim compensation.
Compromise and settlement under Section 147
Every Section 138 offence is compoundable under Section 147, so the case can be closed at any stage if the parties settle. The Supreme Court in JIK Industries v. Amarlal V. Jumani (2012) held that compounding needs the complainant’s consent.
Timing matters because of costs. In Sanjabij Tari v. Kishore S. Borcar (25 September 2025), the Supreme Court revised the earlier cost structure:
| — | — |
|---|---|
| Before the accused’s evidence is recorded | No additional cost |
| After defence evidence, before trial court judgment | 5% of the cheque amount |
| Before the Sessions Court or High Court (appeal / revision) | 7.5% of the cheque amount |
| Before the Supreme Court | 10% of the cheque amount |
The same judgment directed courts to allow service of summons by electronic means and to give the accused an option to pay the cheque amount at the initial stage through an online link, with High Courts and district courts asked to implement these steps by 1 November 2025. Check your summons for any such payment link.
If convicted: appeal and the Section 148 deposit
An appeal against conviction lies to the Sessions Court. Under Section 148, the appellate court may order the appellant to deposit at least 20% of the fine or compensation awarded by the trial court, in addition to any interim compensation already paid. In Jamboo Bhandari v. M.P. State Industrial Development Corporation (2023), the Supreme Court clarified that while the deposit is the normal rule, the appellate court can waive it in exceptional cases with recorded reasons.
Common mistakes on both sides
- Drawers: ignoring the notice; paying in cash without a receipt; sending an angry reply that admits the debt; missing court dates, which leads to warrants.
- Payees: sending the notice after 30 days; demanding interest and costs mixed into the cheque amount without clearly separating them; filing the complaint early (before the 15 days end) or late; not keeping proof of the underlying transaction.
For how the criminal process runs generally, including summons and bail, see our criminal law guide on FIR, bail and your rights. For the payee’s filing steps in more detail, read how to file a Section 138 complaint in Ranchi. If a recovery suit is also on your mind, our civil and consumer remedies guide explains parallel civil options. The full text of the Act is available on India Code: Negotiable Instruments Act, 1881.
Frequently Asked Questions
How many days do I have to reply to a cheque bounce notice?
You have 15 days from the date you receive the notice to pay the cheque amount. A reply disputing liability should be sent within the same 15 days, although the law does not make replying compulsory.
What happens if I do not reply to a Section 138 notice?
Not replying is not itself an offence. However, if you neither pay nor reply, the payee can file a complaint after the 15 days, and you lose the chance to put your defence on record early.
Is a cheque given as security covered under Section 138?
It can be. In Sripati Singh v. State of Jharkhand (2021), the Supreme Court held that if the liability has become due when the security cheque is presented and remains unpaid, its dishonour can attract Section 138.
Can a cheque bounce case be settled after the complaint is filed?
Yes. The offence is compoundable under Section 147 at any stage with the complainant’s consent. Settling before the defence evidence stage involves no extra cost under the Sanjabij Tari (2025) guidelines; later stages attract 5% to 10% of the cheque amount as costs.
Is interim compensation under Section 143A compulsory?
No. The Supreme Court held in Rakesh Ranjan Shrivastava v. State of Jharkhand (2024) that it is discretionary. The court must consider the merits, the plausibility of the defence and the accused’s capacity to pay.
Where is a cheque bounce complaint filed if the drawer lives in another state?
If the payee deposited the cheque in their own account, the complaint is filed where the payee’s bank branch is located (Section 142(2)). A payee banking in Ranchi can file in Ranchi.
Disclaimer: This article is general legal information published in accordance with the Bar Council of India Rules. It is not legal advice or a solicitation of work. Every case depends on its own facts and documents.
About the author
Advocate Ankit Burman practises at the Civil Court, Ranchi and the Jharkhand High Court in criminal, family, civil and property matters. Office: Sunit Ghosh Mansion (ground floor), beside Panchmukhi Hanuman Mandir, near Jagat Pal Street, behind 40 Courts Building, Civil Court, Ranchi, Jharkhand 834001. Phone: +91 7384818188.