Cheque Bounce Case – Stages

under Negotiable Instruments Act, 1881 Section 138

1️. Issuance of Cheque

• Drawer issues cheque to pay legally enforceable debt or liability.

2️. Cheque Presented to Bank

• Cheque must be presented within 3 months from the date on cheque.

3️. Cheque Dishonoured

Bank returns cheque unpaid due to reasons like:

• Insufficient funds
• Account closed
• Payment stopped
• Signature mismatch

4️. Legal Demand Notice

• Payee must send legal notice within 30 days from receiving bank return memo.
• Notice demands cheque amount payment.

5️. 15 Days Payment Period

• Drawer gets 15 days time after receiving notice to make payment.
• If payment made → Case ends.

6️. Filing of Complaint

If payment not made:

• Complaint filed before Judicial Magistrate within 30 days after expiry of 15 days.

7️. Court Proceedings

Court process generally includes:

• Pre-summoning evidence
• Summoning of accused
• Notice under Section 251 CrPC / BNSS equivalent
• Complainant evidence
• Accused defence evidence
• Final arguments

8️. Judgment

Court may order:

• Imprisonment up to 2 years
• Fine up to twice the cheque amount
• Or both.