Cheque Bounce Complaint (India)
Negotiable Instruments Act 1881 — Section 138 Complaint
IN [Court Name]
COMPLAINT UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT 1881
Complainant: [Complainant Name], [Complainant Address]
Accused: [Accused Name], [Accused Address]
Date of Complaint: [Complaint Filing Date]
1. JURISDICTION
This complaint is filed before this Hon'ble Court as this Court has jurisdiction under Section 142(2) of the Negotiable Instruments Act 1881, as amended by the Negotiable Instruments (Amendment) Act 2015, on the basis that: [Jurisdiction Basis].
2. FACTS OF THE COMPLAINT
5.1 The Complainant, [Complainant Name], states that the accused, [Accused Name], issued Cheque No. [Cheque Number] dated [Cheque Date] for ₹[Cheque Amount], drawn on [Accused Bank Details], in favour of the complainant towards [Underlying Transaction].
5.2 The complainant presented the said cheque through [Complainant Bank] for encashment. The cheque was returned unpaid on [Dishonour Date] with the bank's endorsement: '[Dishonour Reason]'.
5.3 The complainant served a written statutory demand notice dated [Notice Date] upon the accused by [Notice Service Mode] demanding payment of the cheque amount of ₹[Cheque Amount] within 15 days. The notice was delivered / deemed served on [Notice Delivery Date].
5.4 The accused was required to make the payment by [Payment Deadline]. The accused has failed and neglected to make the payment of the cheque amount despite receipt of the statutory notice.
5.5 The accused has thereby committed an offence punishable under Section 138 of the Negotiable Instruments Act 1881.
5.6 This complaint is filed within one month of the cause of action arising (i.e., expiry of the 15-day payment period), as required under Section 142 of the Negotiable Instruments Act 1881.
3. PRAYER
In the premises aforesaid, it is most respectfully prayed that this Hon'ble Court may be pleased to:
(a) Take cognizance of the offence under Section 138 of the Negotiable Instruments Act 1881 and issue process against the accused, [Accused Name];
(b) Order interim compensation under Section 143A of the Negotiable Instruments Act 1881 amounting to 20% of the cheque amount;
(c) Upon conviction, direct the accused to pay the cheque amount of ₹[Cheque Amount] together with interest at 18% per annum as compensation under Section 357 of Bharatiya Nagarik Suraksha Sanhita 2023; and
(d) Pass such other and further orders as this Hon'ble Court may deem fit and just.
DOCUMENTS ANNEXED:
4. Original dishonoured cheque (Annexure A)
5. Bank's dishonour memo / return memo (Annexure B)
6. Copy of statutory demand notice (Annexure C)
7. Postal receipt / courier receipt for notice (Annexure D)
8. Delivery acknowledgement / India Post track report (Annexure E)
Complainant (on oath — Section 200 CrPC/BNSS)
________________
Signature
Advocate for Complainant
________________
Signature
What Is a Cheque Bounce Complaint (India)?
A Cheque Bounce Complaint in India sets out the complainant's allegations and the relief sought from the authority or forum it is addressed to.
The legal framework governing the Cheque Bounce Complaint (India) in India draws on several key statutes and regulatory bodies. In India, a cheque dishonour complaint is governed by Section 138 of the Negotiable Instruments Act 1881, which makes dishonour of a cheque for insufficiency of funds a punishable offence. The complaint is filed and tried under the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023, which replaced the Code of Criminal Procedure 1973 from 1 July 2024. Parties executing a Cheque Bounce Complaint (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Negotiable Instruments Act, 1881 (Section 138) sets the foundational requirements.
When Do You Need a Cheque Bounce Complaint (India)?
A Cheque Bounce Complaint under Section 138 NI Act is required whenever a payee receives a dishonoured cheque from a drawer and the mandatory pre-conditions under the Act are fulfilled. The most common situations include: a seller who has received a cheque from a buyer in payment of goods or services and the cheque has been returned unpaid; a lender who has received a post-dated cheque from a borrower as security or in repayment of a loan and the cheque has been dishonoured; a landlord who has received rent cheques that are returned unpaid; a service provider who has accepted cheques in payment of professional fees, construction costs, or other charges and the cheques have bounced; partners or shareholders who have received cheques in settlement of dues and the cheques have not been honoured; and any creditor who has been issued a cheque for settlement of a debt or liability. that Section 138 applies only to cheques issued for discharge of a 'debt or other liability' — cheques issued as a gift, as an advance without obligation to repay, or as a conditional payment may fall outside the section. Courts have held that post-dated cheques issued as security (and not for a presently due liability) do not attract Section 138 at the time of presentation unless the underlying liability has arisen. The complaint is a powerful legal remedy because it is a criminal proceeding — the threat of imprisonment and the stigma of a criminal case are strong deterrents, and courts have been granting interim compensation under Section 143A making the remedy faster and more effective.
Parties in India should prepare a Cheque Bounce Complaint (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. In India, a cheque dishonour complaint is governed by Section 138 of the Negotiable Instruments Act 1881, which makes dishonour of a cheque for insufficiency of funds a punishable offence. The complaint is filed and tried under the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023, which replaced the Code of Criminal Procedure 1973 from 1 July 2024. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Cheque Bounce Complaint (India)
A valid Section 138 Cheque Bounce Complaint must contain: the name, address, and description of the complainant (payee); the name, address, and description of the accused (drawer of the cheque); the name of the court and the jurisdictional basis for filing the complaint; the facts constituting the offence, set out in detail — the nature of the transaction underlying the cheque (debt, purchase price, loan repayment, etc.); the cheque details — cheque number, date of cheque, bank name and branch on which drawn, account number, and the amount; the date of presentation of the cheque to the bank; the date of receipt of dishonour memo from the presenting bank; the reason for dishonour as stated in the bank's memo (insufficient funds, payment stopped, account closed, etc.); the date and mode of service of the demand notice; the content of the demand notice, summarised; the drawer's failure to make payment within 15 days of receipt of notice; the date on which the cause of action arose (15th day after deemed receipt of notice); confirmation that the complaint is filed within one month of the cause of action; the prayer — seeking conviction of the accused under Section 138 NI Act; a prayer for compensation under Section 357 CrPC; a prayer for interim compensation under Section 143A NI Act; the list of documents annexed — cheque, bank memo, demand notice, postal receipt, track report, and acknowledgement card; and the complainant's verification on oath under Section 200 CrPC. The complaint must be supported by a detailed affidavit and verified by the complainant before the Magistrate.
Additional compliance elements for a Cheque Bounce Complaint (India) used in India include: In India, a cheque dishonour complaint is governed by Section 138 of the Negotiable Instruments Act 1881, which makes dishonour of a cheque for insufficiency of funds a punishable offence. The complaint is filed and tried under the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023, which replaced the Code of Criminal Procedure 1973 from 1 July 2024. Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Cheque Bounce Complaint (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/government/court-forms/cheque-bounce-complaint-india
"Cheque Bounce Complaint (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/government/court-forms/cheque-bounce-complaint-india.
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author = {{Forms Legal}},
title = {Cheque Bounce Complaint (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/government/court-forms/cheque-bounce-complaint-india}},
note = {Free legal document template. Based on Negotiable Instruments Act, 1881 (Section 138)}
}Frequently Asked Questions
Section 138 of the Negotiable Instruments Act 1881 creates a criminal offence when a cheque drawn by a person in favour of another person is returned by the bank as unpaid, subject to certain conditions being met. The Supreme Court of India in K.K. Ahuja v. V.K. Vora (2009) 10 SCC 48 and Moses Wilson v. Kasthuribai (2021) SCC identified the following essential elements that must be established for a valid Section 138 complaint: First, the accused must have drawn a cheque on an account maintained with a banker for payment of any amount of money to the payee; Second, the cheque must have been issued for the discharge, in whole or in part, of any debt or other liability; Third, the cheque must have been presented to the bank within a period of three months from the date on which it is drawn or within the period of its validity, whichever is earlier; Fourth, the cheque must have been returned by the bank unpaid either due to insufficiency of funds in the account, or because it exceeds the amount arranged to be paid from that account, or for any other reason referred to as 'stop payment' (provided the stop payment is for reasons attributable to the drawer); Fifth, the payee must have made a written demand for payment within 30 days of receiving the information from the bank regarding the return of the cheque; Sixth, the drawer must have failed to pay the cheque amount within 15 days of receiving the demand notice.
The demand notice is a mandatory pre-condition for filing a Section 138 complaint and its proper service is critical to the validity of the complaint. Under the proviso to Section 138, the payee or holder in due course must give written notice in writing to the drawer of the cheque within 30 days of receiving information from the bank about the return of the cheque as unpaid. The notice must demand payment of the cheque amount. Service of the demand notice is typically effected by sending it by registered post (acknowledgement due) to the drawer at their last known address. Section 27 of the General Clauses Act 1897 provides that service by registered post is complete when the letter is properly addressed, prepaid, and posted, regardless of whether the addressee actually receives it. The Supreme Court in K. Bhaskaran v. Sankaran Vaidhyan Balan (1999) 7 SCC 510 held that the service is complete upon posting and refusal to receive registered post does not invalidate service. Some complainants also send the notice by courier (with delivery confirmation), hand delivery (with acknowledgment), and/or email for additional proof. The notice must clearly state: the date of the cheque; the cheque number and bank; the reason for dishonour; the amount of the cheque; the demand for payment within 15 days; and the warning that failure to pay will result in criminal proceedings. The drawer must be given 15 days from the date of receipt (or deemed receipt) of the notice to make the payment.
Jurisdiction in Section 138 cheque bounce cases has been a subject of significant litigation in India, and the law has evolved through legislative amendments and Supreme Court decisions. Under Section 142(2) of the Negotiable Instruments Act 1881, as amended by the Negotiable Instruments (Amendment) Act 2015, the complaint shall be filed before the court having jurisdiction at the place where the cheque was delivered for collection through a bank or where the cheque was presented for payment at the branch of the drawee bank. This amendment overruled the Supreme Court's controversial decision in Dashrath Rupsingh Rathod v. State of Maharashtra (2014) 9 SCC 129, which had restricted jurisdiction to the bank where the cheque was dishonoured (the drawee bank's branch), causing hardship to payees. Now, the complaint can be filed either at the place where the presenting bank received the cheque for collection (the payee's bank location) or at the drawee bank's location. The competent court is the Judicial Magistrate First Class (JMFC) or Metropolitan Magistrate (MM) in metropolitan areas, as Section 138 offences are triable summarily under Section 143 of the NI Act by these Magistrates. The Supreme Court in Cognizance for Extension of Limitation, In re, suo motu writ petition (2021) extended the limitation periods during COVID-19.
A Cheque Bounce Complaint (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Negotiable Instruments Act, 1881 (Section 138) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The civil and criminal courts of competent jurisdiction in India deal with disputes or offences arising in connection with this type of document. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Cheque Bounce Complaint (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Negotiable Instruments Act, 1881 (Section 138), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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