Common Mistakes in Filing Cheque Bounce (Section 138) Cases
- sconpageseoteam
- Oct 25
- 7 min read
If anyone has a cheque dishonored against them, they can file a case under Section 138 of the Negotiable Instruments Act, which may serve as a potent stir for the cause of justice. But then, an innumerable number of people place a small slip while complaining. If a person errs in small things in drawing up his complaint, it looms as a serious matter to the court.
The courts may dismiss such cases due to the lack of procedural faults. It is hence valuable to get to know common mistakes in cheque bounce cases and take adequate preventive measures against them.
In this blog, we discuss the common mistakes that people make, which include missing out on deadlines, sending an unclear legal notice, having insufficient evidence, and many more. Staying clear of such legally fraught areas will only strengthen your case on the substantive law front and save sincere hours and valuable resources.
What Is a Cheque Bounce Case (Section 138)?
A cheque bounce case, as outlined in Section 138, happens when a bank returns a cheque unpaid. The law in these cases allows the payee protection by enabling him to send a legal notice to the cheque’s drawer. If the drawer doesn’t pay on time, the payee can go to court and file a criminal complaint. This system makes sure people are responsible. It also limits the casual use of cheques in money transactions. Important factors include:
Legitimate Cheque: The cheque should correspond to an actual obligation or debt.
In Time Presentation: You must present the cheque to the bank within three months.
Bank Memo: There must be an official return memo from the bank stating the reason for dishonor.
Legal Notice: The drawer needs to deliver a written notification to the bank within thirty days after the cheque has been returned for insufficient funds.
Failure to Pay: The drawer needs to fail to pay the amount within fifteen days after they get the notice.
Proper Filing: You need to file the case in the correct court within the stipulated timeline.
Your claim will receive more strength when you fulfill these essential requirements, which will also minimize the risk of rejection.
Common Mistakes in Filing Cheque Bounce (Section 138) Cases and How to Avoid Them
Many people start counting cheque bounces without knowing the laws. This often leads to delays or no action on their complaint. Understanding the basic issues in cheque bounce cases (Section 138) is key. Fixing them is important too. Because it saves time, money, and reinforces the court.
Missing the Time Limit
Ignoring legal deadlines is a common mistake in cheque bounce cases. The law is strict about timelines. Even a small delay can lead to the court dismissing your case. Quite a few individuals give up their right to file due to a prolonged wait.
How to Avoid This Mistake
Cheque bounce cases have another important date to remember. As always, act fast on it. You need to send the legal notice within 30 days. You need to file the case immediately when you have not received payment after 15 days. The success of a case depends on accurate deadline tracking.
Wrong Legal Notice
Every bounced cheque case starts with a legal notice. Many people make mistakes when writing one. Common issues include:
Incorrectly stating the cheque amount
Omitting the bounce date.
Skipping key details like the cheque number and bank name
Some cases ignore Section 138 of the Negotiable Instruments Act. This weakens the notice in the eyes of the court. A serious mistake occurs when the notice is delivered incorrectly. This can happen by sending it to the wrong address or not using the right proof of delivery. Each one of these mistakes can lead to the court throwing out the case without consideration.
How to Avoid This Mistake
Check all details on the notice. Look at the amount, date, cheque number, and bank info. Note that the bank dishonoured the cheque under Section 138. Also, keep proof of dispatch via registered post or courier. A well-drafted notice aids your case.
Filing in the Wrong Court
In cheque bounce cases, a common problem is filing a complaint in the wrong court. Many people don’t know that these complaints must go to the right Magistrates' Court. A court that does not have the authority over a filed case will dismiss it. That would not only bring in a delay but also cause extra expenses. For cheque cases, the presentation of the cheque matters. It also depends on where someone dishonoured it or where the payee's bank is located.
How to Avoid This Mistake
Make sure to verify the competent court before filing the petition. Find the place that dishonored the cheque. Then, file the petition in the Magistrate’s Court there. Getting legal advice can help you choose the right court from the start.
Weak Evidence
A key reason bounced cheque cases fail in court is the lack of proper documentation. Many people don’t keep the cheque, the bank returns the memo, or they send proof that they sent the legal notice. Without these documents, you can hardly prove that someone dishonoured the cheque. To move forward with a case, courts need solid documentation. If you have incomplete or missing papers, the system might dismiss your claim.
How to Avoid This Mistake
Keep a copy of the bounced cheque, the bank’s return memo, and the legal notice sent. Keep all receipts, courier slips, and postal acknowledgments. They help in legal cases. Good documentation guarantees that you will be well supported in your case.
Using Wrong Names or Bodies
A frequent problem seen with cheque bounce cases is the use of a different name or entity in the complaint. Others use an old business name or forget to include the signer’s title. In company matters, a complaint must state it's “filed through its director” or “authorized representative.” If it doesn't, it may be invalid. A single spelling mistake or wrong address can cause delays or even dismissal by the court.
How to Avoid This Mistake
Use the exact legal name of the person or company as it appears in official documents.
Check the spelling of names, addresses, and titles for accuracy before filing.
To prevent mistakes, check the registration information for companies or business entities.
If you have doubts, check the legal papers. You can also ask an attorney for accurate information.
Not Following Format Rules
In cheque bounce cases, you must follow a rigid format for complaints. Many individuals commit the error of not following the stipulated format. Many people add the complaint's heading, but they often forget key details. This includes the cheque number, its date, and the amount. The courts have faced complaints without supporting documents. Some lack proper court fee payments, and others use an informal writing style. Minor mistakes can lead to complaints being rejected by courts if they aren't in the right format.
How to Avoid This Mistake
Draft the complaint according to the format prescribed under Section 138.
Please mention the cheque number, date, amount, and the name of the bank that issued the cheque.
Ensure that all attachments, such as the cheque, the bank’s return memo, and evidence of the legal notice, are attached.
Deposit the appropriate court fee as required by the rules.
Ensure that the draft is checked, either by yourself or a lawyer, for any mistakes before submission.
Confusing Civil and Criminal Process
A common mistake in cheque bounce cases is not knowing the legal steps involved. Many think a cheque bounce is only about getting their money back, like in a civil recovery suit. As a matter of fact, Section 138 tackles cheque bounce issues, which are criminal. Filing the complaint in a careless manner will lead to severe penalties. The process encounters delays that might result in complete case dismissal. The case needs attention. It requires someone to treat it as more than a regular civil matter.
How to Avoid This Mistake
Keep in mind that all cheque bounce cases come under criminal law as per Section 138. Right from the start, hire a lawyer who knows criminal procedures and takes the right steps. This ensures the court records your case accurately and takes it seriously.
Not Keeping Copies of Documents
A common mistake is submitting original cheques, memos, and notices. Always make personal copies first. If someone loses or damages the original documents, the complainant has no backup. This adds needless strain and makes the complaint less effective.
How to Avoid This Mistake
Before submission, you must make a scan or photocopy of important documents. Keep a detailed personal file for your case. This way, you’ll have a record to refer to at every stage.
Conclusion
The cheque bounce case under Section 138 looks simple, but requires great attention to detail and due regard for the law. People lose their cases, generally, not because justice works against them, but usually due to some minor mistakes like missing deadlines, sending incomplete legal notices, or insufficient proof of the case.
When such mistakes are present, they will weaken the contention and will give the upper hand to the opposing party. You can make your cheque bounce complaint a strong case by following the correct steps and avoiding simple mistakes. Build your case on all positive grounds by keeping clear documentation.
Follow time limits rigorously, send proper legal notices, and stand for your claims to the fullest. Do take help when in doubt, since it will make the procedure easier for you. Filing the case before the time limit allows one to win, and deciding fairly on the matter as per the law.
Meet Our Experienced Attorneys
Facing criminal, divorce, family, civil, or cheque bounce disputes under Section 138? Our expert lawyers provide personalized solutions and strong representation. Contact Sapna Seth Legal today for guidance.
Frequently Asked Questions
What if the cheque was gifted or lent informally?
If no genuine debt or liability exists, the case may fail. Section 138 applies only when the cheque is issued to satisfy a legal obligation.
What is the duration of the cheque bounce cases?
In general, it depends on the schedule of the respective courts. Without early settlement, the cases tend to drag on for several months or even years.
Is it possible to settle a cheque bounce case out of court?
Indeed, if the drawer consents to clear the payment, the issue can be resolved without going to court. This kind of settlement can be a great time, price, and effort saver.
Is a Cheque Bounce Case Criminal or Civil?
Under Section 138, cheque bounce is a criminal offence. If convicted, the drawer could be penalised with a fine or even face imprisonment.
Advocate Sapna Seth
Sapna Seth is the founder of Sapna Seth Law Office and a highly experienced advocate specializing in criminal, divorce, and family law disputes. With over 18 years of experience, she has practiced in various courts across Delhi NCR, including the Supreme Court of India, and primarily at the Punjab and Haryana High Court in Chandigarh since 2011. When not advocating for her clients, she enjoys furthering her legal knowledge and spending time with her family.
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