Musab Hashmi & Associates practises in cheque bounce matters under Section 138 and related provisions of the Negotiable Instruments Act, 1881 in Hyderabad and Telangana, for payees who hold a dishonoured cheque and for drawers who have received a demand notice or a summons. This page explains how these matters work. It is general legal information, not legal advice.
The statutory time limits are strict. The demand notice is ordinarily due within 30 days of receiving the bank’s information about dishonour, and the drawer then has 15 days from receiving the notice to pay. A reply or negotiation does not by itself extend these periods. Keep the cheque, the bank memo, the notice and the postal records.
Areas of practice · Deadlines · Which court · Stages of a case · What the drawer risks · Settlement · Documents
Areas of practice: cheque bounce
| Matter | Legal routes |
|---|---|
| Payee: demand notice | Notice under Section 138 identifying the cheque, the dishonour and the liability, with a clear demand for the cheque amount |
| Payee: complaint and trial | Complaint under Section 138 before the competent Magistrate, ordinarily registered as a Summary Trial Case (STC) |
| Drawer: reply to a notice | Payment within the 15-day window, a written reply disputing the claim, or a documented settlement |
| Drawer: defence of a complaint | Appearance and bail, exemption from appearance where appropriate, rebutting the Section 139 presumption with evidence |
| Interim compensation and appeal | Section 143A interim compensation during trial; Section 148 deposit on appeal |
| Settlement | Compounding under Section 147 at any stage, including through Lok Adalat |
| Civil recovery | A civil suit for the underlying debt, which can run alongside the criminal complaint |
The deadlines that decide these cases
| Step | Time limit | Counted from |
|---|---|---|
| Present the cheque to the bank | Within its validity | The date on the cheque. The Act refers to six months; the Reserve Bank of India reduced cheque validity to three months, and the RBI may revise this, so check the position current on your date. |
| Send the demand notice | Within 30 days | Receipt of the bank’s information about dishonour |
| Drawer’s window to pay | 15 days | The drawer receiving the notice |
| File the complaint | Within one month | The cause of action, after the 15-day period expires without payment |
There is no fixed 60-day or 75-day total from the bank memo. Where a notice is refused or returned, actual or deemed service has to be assessed; it does not simply remove the 15-day payment period. Delay in filing the complaint may be condoned for sufficient cause, which is different from a late notice. Use the cheque bounce notice deadline calculator for the usual 30-day notice period, and have complaint limitation reviewed against the service evidence.
The offence is not the bouncing of the cheque itself. It is the failure to pay after a valid demand notice. Section 138 applies only to a cheque issued for a legally enforceable debt or liability, wholly or in part.
Which court hears the case
For a cheque collected through an account, Section 142(2)(a) generally places jurisdiction at the branch where the payee or holder in due course maintains that account; depositing it at another branch does not by itself change this. For presentation otherwise than through an account, Section 142(2)(b) looks to the drawee-bank branch where the drawer maintains the account. The competent Magistrate and filing establishment in Hyderabad, Secunderabad or the surrounding districts must then be identified from the bank records and the current court allocation.
Cheque bounce complaints are ordinarily registered as a Summary Trial Case (STC). That is the case type shown on the cause list and used when tracking the case online, so note the STC number once it is allotted.
Stages of a cheque bounce case
- Sworn statement: the complainant’s initial statement is recorded and the court decides whether to take cognizance.
- Summons: the drawer is summoned to appear. Ignoring a summons can escalate to a warrant.
- Appearance and bail: the accused appears, and these matters ordinarily proceed with the accused on bail.
- Plea: the substance of the accusation is put to the accused.
- Evidence: the complainant’s evidence may be given on affidavit under Section 145, followed by cross-examination and defence evidence.
- Final arguments and judgment.
The complainant generally need not attend most procedural stages, as an advocate can appear. The accused’s presence is required at specified stages, though exemption can be sought in appropriate cases.
How long it takes. Section 138 cases are designed to be summary in nature, but in practice, expect one to three years in Hyderabad. What lengthens a matter most is not the law but the calendar: adjournments sought by counsel on either side, and periods when the presiding officer is on training or leave. Complete documentation from the start, prompt service on the accused, and a realistic approach to settlement help.
Court fee. Unlike a civil recovery suit, a Section 138 complaint does not carry a heavy court fee calculated as a percentage of the amount claimed.
What the drawer risks
- On conviction: imprisonment up to two years, or a fine up to twice the cheque amount, or both.
- Interim compensation: under Section 143A the court may direct payment of up to 20 percent of the cheque amount during the trial.
- On appeal: under Section 148, the appellate court may require a deposit of at least 20 percent of the fine or compensation awarded.
The presumption. Under Section 139 the court presumes the cheque was issued for a legally enforceable debt. The presumption is rebuttable, but the burden is on the accused to raise a probable defence. Issues that may form a defence, each needing evidence, include: no legally enforceable debt, or a debt already discharged; a defective notice, such as one with no clear demand for the cheque amount or one sent to a wrong address; a missed deadline; a blank or security cheque filled in contrary to the arrangement, where that can be proved; and material alteration or a signature that is not the drawer’s. Calling a cheque a “security cheque” without more, saying there were no funds, or saying a notice that was correctly addressed and sent was never received or collected, generally do not succeed.
If you have received a notice, read I received a cheque bounce notice: what should I do?
Settlement and compounding
Under Section 147 the offence is compoundable, so the parties can settle at any stage, including during trial and at the appellate stage. Settlement through Lok Adalat is also available. A settlement is usually recorded before the court, often with an instalment schedule and a consequence if an instalment fails. For a drawer, paying the cheque amount within the 15-day window after receiving the notice means no offence is made out.
A Section 138 complaint and a civil suit for the underlying debt serve different purposes and can run in parallel. Which combination fits depends on the amount, the evidence and the drawer’s ability to pay.
Documents to keep
If you are the payee:
- the original cheque and the bank return memo stating the reason for dishonour, with proof of when you received the bank’s information;
- proof of the underlying debt: invoice, loan document, agreement, ledger entry, or the chats and emails showing why the cheque was given;
- the demand notice, postal receipt, tracking record and any returned envelope.
If you are the drawer:
- the notice and the envelope showing the date you received it;
- any agreement, loan document or invoice relating to the transaction;
- bank statements showing payments already made;
- messages, emails and letters about the debt or the cheque, and anything showing the circumstances in which the cheque was handed over.
Related guides and tools
- Cheque bounce cases in Hyderabad: the complete guide
- The 30-day notice rule and what the notice must say
- Filing a cheque bounce case in Hyderabad
- I received a cheque bounce notice: what now?
- Cheque bounce situations: real problems answered
- Cheque bounce notice deadline calculator
Frequently asked questions
How long do I have to send a legal notice after a cheque bounces?
Ordinarily 30 days from receipt of the bank’s information that the cheque was unpaid. Preserve proof of when you received it, because the printed memo date may differ.
How long does the drawer have to pay after receiving the notice?
Fifteen days from receiving the notice. Paying the cheque amount within that window means no offence is made out. A reply or negotiation does not by itself extend the period.
Which court will hear my cheque bounce case in Hyderabad?
For a cheque collected through an account, Section 142(2)(a) generally places jurisdiction at the branch where the payee maintains that account. For presentation otherwise than through an account, Section 142(2)(b) looks to the drawee-bank branch where the drawer maintains the account. The competent court is then identified from the bank records and current court allocation.
Can I go to jail for a bounced cheque?
Section 138 provides for imprisonment up to two years, or a fine up to twice the cheque amount, or both. It is a criminal proceeding and should be treated seriously from the first notice.
What is an STC number?
STC stands for Summary Trial Case. Cheque bounce complaints are ordinarily registered as STC matters, which is the case type shown on the cause list and used when tracking the case.
How long does a cheque bounce case take in Hyderabad?
These cases are designed to be summary, but in practice, expect one to three years in Hyderabad.
Can a cheque bounce case be settled?
Yes. The offence is compoundable under Section 147, so the parties can settle at any stage, including during trial and on appeal, and settlement through Lok Adalat is also available.
Can I file both a criminal complaint and a civil recovery suit?
Yes. A Section 138 complaint is a criminal proceeding for the offence, while a civil suit recovers the underlying debt. They serve different purposes and can run in parallel.
General legal information, not legal advice. Statutory provisions are stated as per the Negotiable Instruments Act, 1881 as amended. Notice, limitation and jurisdiction guidance follows the firm’s cheque bounce guides, updated or checked between 13 and 19 September 2026. Have your own evidence and dates checked.