THE COMPLETE COURT-PROOF GUIDE YOU NEVER FORGET?

 (Step-by-Step)

Cheque bounce is not about cheque.
It’s about TIMELINE, NOTICE, and PROOF.

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ONE-LINE FORMULA (Never Forget)

Cheque → Dishonour → Legal Notice → No Payment → Complaint = Conviction (if proved)

Miss one step → case collapses.

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STATUTORY PROVISION

• Section 138 – Dishonour of cheque
• Section 139 – Presumption in favour of holder
• Section 142 – Cognizance & limitation
• Section 143–147 – Trial, summary procedure, compounding

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PART 1: INGREDIENTS (COURT CHECKLIST)

Court will ask only 6 questions:

Ingredient 1: Legally Enforceable Debt

• Loan / liability must exist
• Time-barred debt ❌
• Security cheque? → depends on evidence

Presumption under Sec 139 is STRONG

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Ingredient 2: Cheque Drawn by Accused

• Signature admitted? → burden shifts to accused
• Blank cheque signed? → still valid

Ingredient 3: Presentation Within Validity

• Cheque presented within 3 months

Ingredient 4: Dishonour by Bank

• Return memo with reasons like:
  • Funds insufficient
  • Account closed
  • Payment stopped

“Stop payment” ≠ escape

Ingredient 5: Legal Notice (MOST LITIGATED)

• Sent within 30 days of dishonour
• Demand of exact cheque amount
• Correct address
• Proper mode (speed post / courier)

Service presumed if properly sent

Ingredient 6: No Payment Within 15 Days

• 15 days from receipt/presumed receipt
• Cause of action arises on 16th day

PART 2: TIMELINE (EXAM + COURT FAVORITE)

Stage	Time Limit
Cheque bounce	Day 0
Legal notice	Within 30 days
Payment time	15 days
Complaint filing	Within 1 month from cause of action

Delay? → Condonation application required

PART 3: COMPLAINT DRAFTING (COURT-PROOF)

Complaint must contain:

• Complete transaction history
• Cheque details (number, date, amount)
• Bank memo details
• Notice details
• Jurisdiction facts

Wrong cheque number? → curable defect if cheque identifiable

PART 4: PRESUMPTION & BURDEN OF PROOF

Section 139 Presumption

Court presumes:

• Cheque for debt
• Issued voluntarily

Accused must rebut by:

• Probability, not proof beyond doubt

Accused Defence Examples

✔️ No debt
✔️ Security cheque
✔️ Already paid
✔️ Blank cheque misuse
✔️ No notice received (weak defence)

PART 5: TRIAL SEQUENCE (ADVOCATE VIEW)

1️. Pre-Summoning Evidence

• Affidavit
• Cheque + memo + notice

2️. Summoning Order

Court applies mind (very lightly)

3️. Notice u/s 251 CrPC

Accused pleads:

• Guilty / Not guilty
• Defence disclosed here is IMPORTANT

4️. Complainant Evidence

• Cross-examination goldmine
• Source of funds questioned

5️. Statement u/s 313 CrPC

Missing incriminating question = defence benefit

6️. Defence Evidence (Optional)

Sometimes no defence evidence is best defence

7️. Final Arguments

• Complainant → presumption
• Defence → reasonable doubt

PART 6: COMMON DEFENCES (REAL COURT)

Defence	Court View
Blank cheque	Valid
Security cheque	Depends
No written agreement	Not fatal
Cash loan	Scrutinised
Notice not received	Weak

PART 7: PUNISHMENT

• Imprisonment: up to 2 years
• Fine: up to double cheque amount
• Compensation preferred by courts

Jail = last option

PART 8: COMPOUNDING & SETTLEMENT

• Allowed at any stage
• Even at appeal stage
• Cost may be imposed (Damodar S. Prabhu case)

FATAL MISTAKES (CASE KILLERS)

❌ Wrong limitation
❌ No proof of notice
❌ Vague complaint
❌ No source of funds (high value)
❌ Mechanical defence

JUDGE’S SECRET MINDSET

“Cheque signed hai + notice gaya + payment nahi hua = why should I acquit?”

So defence must create doubt, not stories.

NEVER-FORGET FLOW (EXAM + COURT)

Debt → Cheque → Bounce → Notice → 15 Days → Complaint → Presumption → Defence → Judgment

SECTION 138 NI ACT

1-PAGE COURT CHECKLIST

A. BASIC INGREDIENTS (Tick All)

☐ Legally enforceable debt/liability exists
☐ Cheque issued towards discharge of debt
☐ Cheque signed by accused
☐ Cheque presented within 3 months
☐ Cheque dishonoured by bank
☐ Bank return memo available

B. DISHONOUR DETAILS

☐ Reason: Funds Insufficient / Account Closed / Stop Payment
☐ Bank memo date mentioned
☐ Same cheque presented only once (or explain multiple presentations)

C. LEGAL NOTICE (MOST CRITICAL)

☐ Notice issued within 30 days of dishonour
☐ Exact cheque amount demanded
☐ Correct name & address of accused
☐ Sent by valid mode (Speed Post / Courier / Email*)
☐ Postal receipt on record
☐ Tracking / delivery report available

Service presumed if properly dispatched

D. 15 DAYS PAYMENT PERIOD

☐ 15 days given from date of receipt / deemed service
☐ No payment received within 15 days
☐ Cause of action arises on 16th day

E. COMPLAINT FILING (Sec 142)

☐ Complaint filed within 1 month of cause of action
☐ Delay? → Condonation application filed
☐ Territorial jurisdiction clearly pleaded

F. DOCUMENT CHECKLIST (MANDATORY)

☐ Original cheque
☐ Bank return memo
☐ Copy of legal notice
☐ Postal receipt & tracking
☐ Authority letter / POA (if applicable)
☐ Complaint affidavit

G. PRESUMPTION & BURDEN

☐ Presumption u/s 139 invoked
☐ Signature admitted or proved
☐ Burden shifted to accused

H. TRIAL STAGES (TRACK PROGRESS)

☐ Pre-summoning evidence
☐ Summoning order passed
☐ Notice u/s 251 CrPC framed
☐ Complainant cross-exam done
☐ Statement u/s 313 CrPC recorded
☐ Defence evidence (if any)
☐ Final arguments heard

I. COMMON DEFENCES (MARK APPLICABLE)

☐ Blank cheque defence
☐ Security cheque defence
☐ No debt / time-barred debt
☐ No notice received
☐ Amount already paid

J. RELIEF / RESULT

☐ Conviction sought
☐ Compensation u/s 357 CrPC
☐ Fine / imprisonment
☐ Compounding explored

FILE-CLOSING RED FLAGS

❌ Limitation error
❌ Defective notice
❌ Wrong cheque details without explanation
❌ No source of funds (high-value cases)

GOLDEN LINE (Remember Forever)

“Signature + Dishonour + Notice + No Payment = Presumption of Guilt”