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Writer's picturelead India
Jul 18, 20233 min read

What Is The Time Limit For Withdrawing Check Bounce Cases?

A "bill of exchange" that is due upon demand is a cheque. The "drawer" is the person who issues the cheque, and the "drawee" is the person for whom the cheque is issued.


Cheques are used in practically all transactions, including loan repayment, wage payment, payment of bills, payment of fees, etc. On a daily basis, banks process and clear the vast majority of checks. Cheques are issued as a means of obtaining payment documentation.


A phenomenon known as a "cheque bounce" results from the non-payment of the money owing to an insufficient balance in the account. Quick action must be done in order to retrieve the sum.


How Do You Start Legal Action If a Cheque Bounces?

  • Within 30 days of a dishonored cheque, the beneficiary sends the defaulter the Cheque Bounce Notice through registered mail. The notification of a bounced cheque must be correctly prepared and contain information regarding the transaction's type, amount, date the cheque was placed with the bank, and the name of the person who issued the cheque date the notification was bounced, the cause of the bounced cheque, and the beneficiary's request for payment within 15 days.

  • The payee may bring a criminal prosecution before a court if the check issuer defaulted in payment within 30 days after the expiration of the 15-day notification period.

  • Cheque bounce complaints must be lodged at the court of the city where the cheque was presented.

  • Following the admission of the case, a hearing will take place, and summonses will be issued in accordance with Section 138 of the Negotiable Instruments Act.

  • Cheque defaulter must appear before the court to get the issue resolved.

What steps are involved in bouncing a cheque?

  • Demand notification is delivered within the next 30 days. After receiving a demand notice, the drawer has 15 days to make payment.

  • The notification of a bounced cheque is delivered by registered mail, providing documentation of the delivery.

  • If payment is due within 15 days but is not, the payee has 30 days to file a complaint with the magistrate.

  • In the state where the bank is located, a complaint must be lodged.

Penalties and Sanctions

The court will issue a summons and hold a hearing once it receives the complaint, an affidavit, and any pertinent document trail. If found guilty, the defaulter may be sentenced to a financial fine that is up to twice the amount of the cheque.


Aterm of imprisonment that may be up to two years long, or perhaps both. When checks bounce often, the bank has the power to cancel the account and cease allowing customers to use cheque books.


The drawer does not violate the law if the cheque amount is paid in full within 15 days of the notice's receipt date. If not, the payee may proceed to submit a complaint in the jurisdictional magistrate's court within a month of the notice's 15-day expiration date.


Withdrawal of Case:

There is a chance for a settlement outside of court in a matter involving a bounced cheque. The statute provides the settlement of a check-bouncing case after the filing of a criminal complaint. Compounding of crimes, a legal concept, is used to accomplish this.


In this procedure, the payee/holder of the check consents to refrain from filing a lawsuit or consents to have his lawsuit withdrawn in exchange for some form of payment (often monetary). This might occur at any point throughout the court case. The legislation permits such an arrangement in order to lessen litigation and the load on the courts.


Get a date established in front of the relevant court once you have made the final payment of the agreed-upon settlement sum. Before the aforementioned court, you must present evidence of total payment as promised. After hearing the complainant's account, the court compounds the case. Consequently, your case would be finished.


If the cause of action occurred in Delhi then Corporate lawyers in Delhi may be consulted. Corporate lawyers in Gurgaon may be appointed if the cause of action has occurred in Gurgaon. If the cause of action has occurred in Noida then Corporate lawyers in Noida may be appointed.


Lead India offers information, legal services, and free legal advice online to solve the issue. Talk to a lawyer and ask a legal question will provide the finest counsel in this situation.


Call Us: +91–8800788535


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