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What to Do If a Cheque Bounces – Legal Steps You Must Take

A cheque bouncing can be frustrating, especially when it involves a large amount. If you're facing this issue, the law offers strong protection under Section 138 of the Negotiable Instruments Act, 1881.

Here are the steps to follow:

✅ Step 1: Bank Endorsement

> When your cheque is returned unpaid, your bank will give a return memo stating the reason (like “insufficient funds”).

✅ Step 2: Send Legal Notice

> You must send a legal notice within 30 days of receiving the return memo, demanding payment within 15 days.

✅ Step 3: File a Criminal Complaint

> If the drawer doesn’t pay within 15 days, you can file a criminal complaint under Section 138 NI Act within 1 month after the 15-day period ends.

📌 Tip from Advocate Murali:

> "Always preserve your bank return memo, copy of legal notice, and postal receipts. These are crucial for filing the case and proving your side in court."

Need Help?

If you have a cheque bounce issue, contact us at Murali Advocate and Associates, Kodungaiyur.

📞 8870481234 | ✉️ advmuralipmk@gmail.com