Advocate Mohammad Kamran
- 10+ Years of Legal Experience
- Enrolled with the Bar Council of Uttar Pradesh
- Certificate of Practice holder
Cheque Bounce Lawyer in Lucknow
For the payee: pursuing a dishonoured cheque from the demand notice through to the complaint and trial.
Cheque Bounce and Recovery
What this covers
When a cheque is returned unpaid for want of funds or because it exceeds the arrangement with the bank, the payee has a remedy under section 138 of the Negotiable Instruments Act, 1881 — but only if a sequence of steps is followed in order and within time. The bank's return memo starts the clock, and everything after it is counted from documents rather than from memory.
The Act works with presumptions that favour the holder of the cheque, which is what makes the remedy useful. Those presumptions are rebuttable, so the complaint still has to be built on a clear record of what the cheque was issued for. Complaints are tried summarily, and provisions introduced in 2018 allow a court in appropriate cases to direct interim compensation while the matter is pending.
Who this may assist
Who this service may assist
If your situation is not listed, it does not mean it cannot be dealt with. It means it should be discussed.
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A business holding a returned cheque
A cheque received against invoices has been returned unpaid.
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A lender or seller
A cheque given towards repayment or against a sale has been dishonoured.
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A landlord or service provider
Cheques towards rent or fees have been returned.
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A payee whose notice has gone unanswered
The demand notice was served and the fifteen-day period has passed without payment.
Scope
Typical matters handled
- Advice on the return memo, the reason for dishonour and whether the section 138 route is open
- Drafting and despatch of the statutory demand notice within the period allowed
- Filing the complaint before the Magistrate having jurisdiction, with the supporting documents
- Appearance at the complainant's examination and through the summary trial
- Applications for interim compensation during the pendency of the complaint, where appropriate
- Parallel civil recovery of the amount, and execution of any decree obtained
Process
How the work generally proceeds
The sequence varies with the facts and the forum. This is the usual shape of it.
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Step 01
Checking the return memo
The date of the memo and the reason for return are examined, since both affect whether the section applies and when the period begins.
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Step 02
Counting the periods from the documents
Thirty days from receipt of intimation of dishonour for the notice, fifteen days for the drawer to pay, and one month from the end of that period to file. Dates are worked out on your papers.
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Step 03
Drafting the demand notice
The notice has to identify the cheque, the amount and the liability clearly, and demand payment. A defective notice is a recurring cause of failure.
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Step 04
Proving service
Despatch records, tracking and acknowledgement are preserved, because service of the notice is routinely disputed.
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Step 05
Filing and conducting the complaint
Before the court having jurisdiction by reference to the bank branch where the cheque was presented, followed by the complainant's examination and trial.
Preparation
Documents commonly required
Bringing what you have makes the first discussion considerably more useful. Missing items can be obtained later.
- The original cheque, and the bank's return memo
- Bank statement showing presentation and return of the cheque
- The invoice, agreement, ledger or loan document showing what the cheque was issued for
- A copy of the demand notice with postal receipt, tracking record and any acknowledgement
- Any reply received to the notice
- Identity and address proof, and authorisation where the complainant is a company or firm
Cautions
Common risks and mistakes
- Letting the notice period lapseThe window for the demand notice is short and is counted from intimation of dishonour. Once it passes, the criminal remedy may be gone even though the debt is not.
- A vague demand noticeA notice that does not clearly identify the cheque and demand the cheque amount can be held defective, and the complaint fails with it.
- Not keeping proof of despatchService of the notice is one of the most commonly contested issues. Keep receipts, tracking printouts and returned envelopes unopened.
- Re-presenting the cheque without adviceRe-presentation affects the counting of periods and can complicate the position. Take advice before depositing again.
- Filing in the wrong courtJurisdiction depends on the bank branch where the cheque was delivered for collection. Filing elsewhere wastes time the timelines do not allow.
See also
Related services
Reading
Related Guides
General information notes on this area. They are not legal advice.
The practice
Advocates
Each advocate of the firm is enrolled with the Bar Council of Uttar Pradesh and holds a Certificate of Practice.
Advocate Hamid Razzaq
- 15+ Years of Legal Experience
- Enrolled with the Bar Council of Uttar Pradesh
- Certificate of Practice holder
Advocate Mohd. Mateen
- 20+ Years of Legal Experience
- Enrolled with the Bar Council of Uttar Pradesh
- Certificate of Practice holder
Questions
Frequently asked questions
The section is framed around dishonour for insufficiency of funds or because the amount exceeds the arrangement. Other reasons for return have been the subject of considerable litigation and the position depends on the facts and the reason recorded. The return memo should be examined before any step is taken.
The Act provides for imprisonment, or a fine calculated by reference to the amount of the cheque, or both, and for compensation. The maximum the provision allows should be confirmed against the section as it currently stands rather than taken from a note, and what is ordered in a particular matter is for the court. No outcome can be promised.
Not usually every date, since these matters are tried summarily and appearance is generally through the advocate. Your presence is required at certain stages, most importantly when your evidence is recorded.
Yes, and settlement is common in these matters. A settlement can be placed before the court and recorded, which is preferable to an informal arrangement that later has to be proved.
Where the firm works
Lucknow and Uttar Pradesh Coverage
The firm's office is in Lucknow. Matters arising in other districts of Uttar Pradesh are conducted from Lucknow before the court, tribunal or authority that has jurisdiction over them. There is no branch office elsewhere. Which forum will hear a particular matter depends on its subject, its value and where the cause of action arose, and is confirmed before anything is filed.
This page is general information about an area of practice. It is not legal advice, and it is not an advertisement or a solicitation of work. Reading it creates no advocate–client relationship.
Procedures, limitation periods, court fees, stamp duty and government charges change, and what applies depends on the facts of the particular matter. Nothing here should be acted on without advice on your own documents, and no outcome is promised or predicted.
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