Introduction to Cheque Bounce Cases and Civil Advocates

A cheque bounce case, legally known as cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881, is one of the most common financial disputes in India.
It occurs when a cheque is returned unpaid due to insufficient funds, account closure, or signature mismatch.

In, such cases are handled under a criminal framework, but they often involve civil elements like loan recovery, business disputes, or bank settlements — which is where the expertise of a civil advocate becomes crucial.

LSO Legal provides top-ranked civil and criminal advocates, who handle cheque bounce cases, notice drafting, complaint filing, and settlement proceedings efficiently and lawfully.

Why a Civil Advocate is Important for Cheque Bounce Cases

Even though Section 138 is a criminal provision, most cheque bounce matters arise from civil or commercial transactions, such as:

• Business partnerships

• Property deals

• Personal loans

• Credit transactions

• Rent or EMI payments

A civil advocate understands both financial liability and legal recovery aspects — ensuring you don’t just win the criminal case, but also recover your dues effectively through civil enforcement.

People Also Read: Cheque Bounce Lawyer in Bhopal – Section 138 Legal Experts & Notice Drafting Help

Role of Civil Advocates in Cheque Bounce Cases

1. Issuing Legal Notices:
   Drafting and sending a proper notice under Section 138 within 30 days from the cheque return memo.

2. Filing Criminal Complaint:
   Filing a complaint before the Judicial Magistrate First Class (JMFC), along with all supporting documents.

3. Filing Civil Recovery Suit:
   Initiating a civil case for recovery of cheque amount, interest, and damages under the Civil Procedure Code.

4. Negotiation & Mediation:
   Helping clients reach out-of-court settlements or mediated compromises as permitted under Section 147 NI Act.

5. Defence for Accused Persons:
   Representing accused clients who are wrongly implicated or facing false cheque bounce complaints.

Understanding the Cheque Bounce Legal Framework

1. Section 138 of the Negotiable Instruments Act

It makes cheque dishonour a criminal offence if:

• The cheque was issued for a legally enforceable debt;

• It was returned unpaid by the bank; and

• The drawer failed to pay within 15 days of receiving the legal notice.

2. Section 142 of the NI Act

Specifies who can file and where to file the complaint.

3. Section 147 of the NI Act

Allows compounding (settlement) of cases anytime before conviction.

Step-by-Step Process for Cheque Bounce Case

Step 1 – Cheque Dishonour by Bank

The payee receives a “Cheque Return Memo” from the bank mentioning the reason for dishonour.

Step 2 – Legal Notice

A written legal notice is sent within 30 days to the cheque issuer demanding payment within 15 days.

Step 3 – Non-Payment by Drawer

If the drawer does not clear the payment, the complainant gains the right to file a criminal complaint in the court.

Step 4 – Filing of Complaint in Court

The advocate files a Section 138 complaint along with:

• Original cheque

• Bank memo

• Copy of legal notice & proof of delivery

• ID proof and authorization letter

Step 5 – Court Proceedings

Summons are issued, both parties present evidence, and the trial begins.

Step 6 – Judgment or Settlement

If the offence is proved, the accused may face up to 2 years’ imprisonment or fine up to twice the cheque amount, or both.

People Also Read: Advocate for Cheque Dishonour / Bank Cheque Bounce & Legal Notice Cases in Bhopal

Documents Required

• Original bounced cheque

• Bank return memo (with reason of dishonour)

• Copy of legal notice

• Proof of delivery (post receipt or WhatsApp/email screenshot)

• Transaction proof (invoice, loan agreement, etc.)

• Identity proof of complainant or authorized person

Civil and Criminal Remedies for Cheque Bounce

Bank and Loan Cheque Bounce Cases

Our civil advocates, also handle cheque bounce cases involving:

• Bank loan or EMI defaults

• Credit card cheque dishonour

• Post-dated security cheque misuse

• Recovery from business clients or tenants

LSO Legal ensures timely action and lawful recovery without harassment or procedural delay.

Why Choose LSO Legal

• Experienced civil & criminal advocates specialized in NI Act cases

• Notice drafting, filing, and defence under one platform

• Transparent fee structure and case tracking system

• Representation before JMFC, District, and High Court

• Support for both complainant and accused clients

People Also Read: Cheque Bounce Lawyers and Legal Advisors in Bhopal

Common Mistakes to Avoid

• Ignoring the 30-day notice period

• Sending incomplete or informal legal notice

• Filing case without proof of liability

• Not appearing on hearing dates

• Attempting verbal settlements without documentation

Need Legal Help for Cheque Bounce Cases?

If you’re facing a cheque bounce dispute — whether as a complainant seeking recovery or as a defendant protecting your rights — contact LSO Legal today.

Our experienced civil and criminal advocates, handle Section 138 NI Act proceedings, legal notices, recovery suits, and bank-related cheque dishonours with professionalism and speed.

Helpline: 0755-4222969 | +91-9171052281
WhatsApp: +91-8109631969
Website: https://lsolegal.com
Email: support@lsolegal.com

Office Address:
Flat No. 205, C1 Block, Swami Vivekanand Parisar, Katara Hills, Bhopal – 462043
Service Area: Pan India

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Frequently Asked Questions (FAQ) – Cheque Bounce & Civil Advocates

1. Is cheque bounce a civil or criminal offence?

Cheque bounce is a criminal offence under Section 138 NI Act but arises from civil liability like loan or business transactions.

2. What is the punishment for cheque bounce?

Imprisonment up to 2 years, or fine up to twice the cheque amount, or both.

3. Can a civil advocate handle a cheque bounce case?

Yes. Civil advocates are ideal for cases involving financial recovery, business disputes, and cheque dishonour linked to civil transactions.

4. What is the time limit to file a cheque bounce case?

Legal notice: within 30 days from bank memo;
Court complaint: within 30 days after the 15-day payment period expires.

5. Can the case be settled outside court?

Yes. Cheque bounce is compoundable under Section 147 NI Act; both parties can file a settlement memo in court.

6. How do I recover the cheque amount legally?

File both a criminal complaint (Section 138) and a civil recovery suit to ensure repayment plus compensation.

7. What if the cheque was given by a bank loan borrower?

If a bank loan EMI cheque bounces, the lender can take legal action under Section 138 as well as initiate loan recovery proceedings.