A cheque to you bounced? Here's exactly what to do — and act fast.
Someone paid you by cheque, you deposited it, and the bank sent it back unpaid. This happens all the time in India — and the law gives you a strong, quick way to recover your money. But the clock is strict, so it pays to move now.
Ask her about this — freeWhat the law actually says
- Bank the cheque before it expires — six months from the date on it at the outside, and often less — because everything below depends on it. When a cheque is dishonoured, your bank gives you a slip called a cheque return memo, usually marked "insufficient funds" or "payment stopped". That slip is your proof, so keep it safely.
- From the day the bank tells you the cheque has bounced, you have 30 days to send the person a written demand notice asking them to pay. Miss this window and you lose the criminal route, so it matters.
- Once they receive the notice, they get 15 days to pay you. If they pay, the matter ends. If they don't, you can file a criminal complaint within one month — at the magistrate's court where your own bank branch is, not theirs. This is the well-known Section 138 route.
- If you win, the court can sentence the person to up to 2 years in jail and/or order them to pay you up to twice the cheque amount as compensation. You can also separately file a civil recovery suit to get the money itself.
What to do
- 1
Collect the bounce memo and the cheque
Get the cheque return memo from your bank and hold on to the bounced cheque. Note the date on the memo — your 30 days to send the demand notice runs from it. The deadlines after that run from a different date: the day the other side receives your notice.
- 2
Send a written demand notice within 30 days
Send a formal notice by registered post, telling the person their cheque bounced and asking them to pay the full amount within 15 days — the law fixes that period, so you can't shorten or lengthen it. Keep the postal receipt: the deadlines after this run from the day they receive the notice. This step is compulsory — without it you can't go to court on the criminal route.
- 3
Wait 15 days for them to pay
Give them the 15 days the law allows. Many people pay at this stage to avoid a case. If they pay, you're done. If they go silent or refuse, you've now earned the right to file.
- 4
File the complaint within one month
If they haven't paid, file a cheque-bounce complaint within one month of the 15-day period ending, at the magistrate's court where your own bank branch is. If you are late, the court can still take it up if you satisfy it you had good reason — but don't rely on that. Carry the cheque, the return memo, your notice and the postal receipt. You can also start a civil suit to recover the money.
Your rights, at a glance
Deposit the cheque and get a return memo
- How long it takes
- Before the cheque expires — 6 months at the outside
- Where to go
- Your own bank
- Rough cost
- Free (small bounce charge sometimes)
Send the demand notice
- How long it takes
- Within 30 days of the bank telling you
- Where to go
- Yourself, or a lawyer / Miss Lucy Pro to draft it
- Rough cost
- Free if you write it yourself
File the criminal complaint (Section 138)
- How long it takes
- Within one month after the 15-day wait (later, with good reason)
- Where to go
- Magistrate's court where your bank branch is
- Rough cost
- Court fee + lawyer
File a civil recovery suit for the money
- How long it takes
- Several months
- Where to go
- Civil court
- Rough cost
- Court fee + lawyer
Common questions in this area
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When you need a real lawyer
The demand notice has to be worded and dated correctly, and the deadlines are unforgiving — so getting it right early really matters. Miss Lucy Pro drafts that legal notice for you; a local advocate then files the complaint and handles the court hearings. For amounts above a few thousand rupees, it's worth getting both.
Get the demand notice drafted right — meet Miss Lucy ProThis is guidance, not a lawyer. Miss Lucy Lite helps you understand your rights and your next step in plain English. It is in no way a replacement for proper legal advice — when your situation needs a real document or a fight in court, she'll tell you plainly that it's time to see a lawyer.