Cheque Bounce Case in Delhi: The Filing Procedure Step by Step

A dishonoured cheque is a common but time-sensitive problem. Section 138 of the Negotiable Instruments Act gives the payee a criminal remedy, but only if a strict sequence of deadlines is followed exactly.

Step 1: The Cheque Is Returned Unpaid

The bank returns the cheque with a memo citing the reason — usually "insufficient funds" or "account closed". This return memo date starts the clock.

Step 2: Legal Demand Notice — Within 30 Days

The payee must send a written legal notice to the drawer demanding payment, within 30 days of receiving the bank's return memo. This notice should clearly state the cheque details, the amount, and a demand for payment within the statutory period.

Step 3: The 15-Day Payment Window

The drawer then has 15 days from receipt of the notice to make payment. If payment is made within this window, no offence is made out under Section 138.

Step 4: Filing the Complaint — Within 30 Days

If payment is not received within the 15-day window, the payee can file a criminal complaint before the Magistrate's Court, and must do so within 30 days of the payment deadline expiring. Missing this window can bar the complaint, subject to limited condonation of delay for sufficient cause.

Where to File in Delhi

Jurisdiction lies with the Magistrate's Court where the payee's bank branch presented the cheque for collection. For businesses and individuals banking in South West Delhi, this frequently means filing before the Dwarka Courts complex.

What Happens After Filing

Once the complaint is filed with supporting documents (the cheque, return memo, notice, and proof of service), the Magistrate examines the complainant on oath and, if satisfied a prima facie case exists, issues summons to the accused. The matter then proceeds through appearance, plea, evidence, and — frequently — settlement, since Section 138 offences are compoundable at any stage.