Section 138 NI Act Cheque Dishonour Legal Solutions
A dishonoured cheque can severely disrupt your business operations and financial stability. At LawFusion, led by Advocate Prachi Goel, we provide end-to-end prosecution and defense services under Section 138 of the Negotiable Instruments Act.
From serving statutory 30-day legal notices to filing criminal complaints before Metropolitan Magistrate Courts and handling out-of-court settlements, we ensure swift monetary recovery.
Critical Timelines & Requirements under Section 138 NI Act
Cheque bounce cases are strictly time-bound. Missing a statutory deadline can forfeit your right to criminal prosecution:
- 30 Days Statutory Legal Notice: Must be dispatched to the drawer within 30 days of receiving the Cheque Return Memo from the bank.
- 15 Days Cure Period: The drawer is given 15 days from notice receipt to clear the outstanding payment.
- 30 Days Complaint Filing: If unpaid after 15 days, a criminal complaint must be filed before the Magistrate within 30 days.
- Interim Compensation (Sec 143A): Courts can order the accused to pay up to 20% of the cheque amount as interim relief during trial.
Our Cheque Bounce Legal Services
1. Legal Notice Drafting & Service
Drafting airtight statutory legal notices detailing transaction history, debt liability, and warning of criminal prosecution.
2. Criminal Complaint Filing & Trial
Filing complaint under Sec 138, recording pre-summoning evidence, securing court summons/warrants, and conducting trial.
3. Defense Representation for Accused
Defending individuals or companies falsely implicated in cheque bounce cases by proving absence of legal enforceable debt.
Documents Required for Filing a Section 138 NI Act Case
Court Trial Procedure under Section 138 NI Act
Complaint Filing & Cognizance
Filing formal complaint before Metropolitan Magistrate along with evidence affidavit.
Summons & Appearance of Accused
Court issues summons; accused appears and takes bail while framing of notice takes place.
Trial & Interim Relief Order
Court orders 20% interim compensation under Sec 143A; trial proceeds to cross-examination and judgment.
Cheque Bounce FAQs - Delhi Courts
What is the punishment for cheque bounce under Section 138?
Imprisonment up to 2 years, or fine up to twice the cheque amount, or both.
Can a cheque bounce case be settled out of court?
Yes, Sec 138 is a compoundable offense and can be settled amicably at any stage of trial.
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