Cheque Bounce Cases in India: The Section 138 Process for NRIs

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Key takeaway

Cheque bounce cases turn on strict deadlines: a demand notice within 30 days of learning of the dishonour, 15 days for payment, then one month to file the complaint. Miss a step and the case can fail.

The timeline

Stage Time limit
Present the cheque Within its validity period
Send written demand notice Within 30 days of receiving information of dishonour
Drawer may pay 15 days from receiving the notice
File complaint Within one month after the 15 days end

Where to file

Generally in the court with jurisdiction over the branch where the payee presented the cheque or maintains the account (Section 142(2)).

During the case

  • The court may order interim compensation of up to 20% of the cheque amount (Section 143A).
  • On appeal against conviction, the appellate court may require a deposit of at least 20% of the fine or compensation (Section 148).
  • The offence is compoundable — settlement is possible at any stage (Section 147).
  • Punishment can include imprisonment up to two years or a fine up to twice the cheque amount, or both.

For NRI complainants

  • A power of attorney holder with knowledge of the transaction can file and pursue the complaint (A.C. Narayanan, 2013).
  • Keep the original cheque and return memo safe.
  • A parallel summary suit can be filed to recover the money.

For NRIs facing a complaint

  • Do not ignore summons — warrants can follow.
  • Seek exemption from personal appearance or video appearance.
  • Defences can include no legally enforceable debt, defective notice or a time-barred complaint.
  • Consider settlement early.

Frequently asked questions

Can I send the notice by email?

Courts have accepted electronic notices in some cases, but registered post or courier with proof is safer.

Does the complaint get dismissed if I’m abroad?

Not if you appoint a proper representative and follow the court’s directions.

Can the case end in a settlement?

Yes, it is compoundable.

Related LegalCops services

References

  • Negotiable Instruments Act, 1881 — Sections 138, 142, 143A, 147, 148
  • A.C. Narayanan v. State of Maharashtra (2014) 11 SCC 790

Last reviewed: November 2026.

The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.

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