Cheque bounce is an criminal offence u/s 138 Negotiable Instrument Act, 1881. And if your’s cheque is bounced or dishonoured, provided it is presented before the vality of cheque, first of all you should inform the drawer of the cheque (the person who issued the cheque) and if you did not get the favourable response, you must have to give legal demand notice to the person within 30 days from the time when the cheque got bounced. If the drawer fails to pay or give any satisfactory reply, you can file complaint case in the magistrate court to get relief.
Where to file the case ? (Jurisdiction )
As per the Negotiable Instruments (Amendment) Act, 2015 a complaint can be filed under Section 138 for dishonor of cheque at a court within whose local jurisdiction:-
- The branch of the bank is located
- The payee or the holder maintains an account
In view of this recent amendment, a complaint for dishonor of cheque under Section 138 of Negotiable Instruments Act can be filed in the court situated at a place where the bank of the payee is situated.
The documents required to file a cheque bounce case in India are:
- Copy of the notice served on drawer;
- Proof of service of notice, either courier receipt or receipt of registered post A.D.
- Original cheque on record
- Cheque return memo issued by the banker to the drawer
What are the punishment in the cheque bounce case ?
Currently, bounced cheques can lead to imprisonment of up to two years and a fine of up to twice the value of the cheque or both under the Negotiable Instruments Act.