Cheque bounce lawyer in Delhi

Cheque Bounce Lawyer in Delhi: Section 138 NI Act

Quick answer: Cheque bounce in Delhi

A dishonoured cheque is an offence under Section 138 of the Negotiable Instruments Act, 1881 if the payee sends a written demand notice within 30 days of the bank's return memo and the drawer does not pay within 15 days of receiving it. The complaint must be filed within one month after that. In Delhi, it is filed before the Magistrate in whose area the payee's bank branch, where the cheque was presented, is located (Section 142(2)). The court can order interim compensation of up to 20% under Section 143A. Law Chambers of Mridul Jindal handles these matters in Delhi. Call +91-8800669834.

Written and reviewed by Adv. Mridul Jindal, Advocate enrolled with the Bar Council of Delhi (2021) · Last updated 1 Nov 2026

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Where to File a Cheque Bounce Case in Delhi

Jurisdiction depends on the payee's bank branch where the cheque was deposited for collection, not on where the drawer lives. If that branch is in East Delhi, for example, the complaint goes to the Magistrates at Karkardooma; if it is in South Delhi, to Saket. Each Delhi district has Magistrates' courts that hear NI Act complaints. See the Delhi courts guide for the district-wise court complexes.

Step by Step for Payees

  • Demand notice: Sent within 30 days of the return memo, stating the cheque details and amount.
  • Complaint: Filed within one month after the 15-day payment period ends, with the cheque, return memo, notice and proof of delivery.
  • Interim compensation: An application under Section 143A for up to 20% of the cheque amount during trial.
  • Recovery: On conviction, the court can impose a fine of up to twice the cheque amount and award compensation; a civil recovery suit can run in parallel.

Defences and Settlement for Drawers

A drawer can contest the case, for example where the cheque was not given for a legally enforceable debt, the notice was defective, or the complaint was filed out of time, but the law presumes that the cheque was issued for a debt (Section 139), so evidence is needed to rebut it. The offence is compoundable under Section 147, and the Supreme Court has encouraged early settlement, with costs that increase at later stages (Damodar S. Prabhu v. Sayed Babalal, 2010). An appellant against conviction can be directed to deposit at least 20% of the fine or compensation under Section 148.

Documents to Keep Ready

  • Cheque and memo: The original cheque and bank return memo.
  • Notice: Copy of the demand notice with postal or courier receipts and tracking.
  • Transaction proof: Invoices, loan agreement, bank transfers or messages showing the debt.

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Frequently Asked Questions

The Magistrate's court for the area where your bank branch, where the cheque was presented for collection, is located, under Section 142(2) of the NI Act.

The demand notice must be sent within 30 days of receiving the bank's return memo. The drawer has 15 days to pay, and the complaint must be filed within one month after that.

Yes. The court can order the drawer to pay interim compensation of up to 20% of the cheque amount under Section 143A, which is refundable if the drawer is acquitted.

Yes. The offence is compoundable under Section 147, and settlement is possible at any stage, including in Lok Adalat or mediation.

Cheated, or accused of fraud?

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