Last updated: 18 October 2026
Short answer: If the drawer does not pay within 15 days of receiving your section 138 demand notice, file a written complaint under sections 138 and 142 of the Negotiable Instruments Act, 1881 before the Judicial Magistrate of the first class (or Metropolitan Magistrate) within one month from the day after those 15 days end. File in the court having jurisdiction over the branch of your bank where you deposited the cheque. Attach the original cheque, the return memo, the notice with proof of delivery and your evidence affidavit. The case is tried summarily, the court may order up to 20 per cent interim compensation, and the parties can settle at any stage.
Where the complaint fits in the timeline
| Step | Time limit | Provision |
|---|---|---|
| Demand notice | Within 30 days of the bank’s return memo | Section 138, proviso (b) |
| Drawer’s time to pay | 15 days from receipt of notice | Section 138, proviso (c) |
| Complaint | Within one month of the cause of action (the day after the 15 days expire) | Section 142(1)(b) |
| Delayed complaint | Court may take cognizance if the complainant shows sufficient cause | Proviso to section 142(1)(b) |
If you have not yet sent the notice, start with our guide to the cheque bounce notice under section 138, which includes a free notice sample and a worked example of the dates. A complaint filed before the 15 day period ends is premature, so count carefully.
Who can file
- The payee or the holder in due course of the cheque. Section 142(1)(a) requires a complaint in writing by one of them.
- A company or firm files through an authorised representative, with a board resolution or authority letter. In A.C. Narayanan v. State of Maharashtra, (2014) 11 SCC 790, the Supreme Court accepted complaints through a power of attorney holder, but held that the holder should have witnessed the transaction or have due knowledge of it, and the complaint should say so.
Name every person liable. Where the drawer is a company, section 141 also makes liable every person who was in charge of and responsible for the conduct of its business when the offence was committed, so name the directors or partners who fit that description and plead their role specifically.
Which court
Section 142(2), inserted in 2015, fixes territorial jurisdiction:
- if the cheque was delivered for collection through an account, the court within whose local limits the branch of the bank where the payee or holder in due course maintains that account is situated;
- if the cheque was presented for payment otherwise (for example, over the counter), the court within whose local limits the drawer’s bank branch is situated.
Section 143 says the case is tried by a Judicial Magistrate of the first class or a Metropolitan Magistrate. Some districts have designated particular courts for NI Act cases, so confirm the right court at the filing counter.
What to write in the complaint
- The parties, with full addresses, phone numbers and e-mail IDs of the accused (useful for electronic service of summons).
- The underlying debt or liability, with dates and documents.
- Cheque details: number, date, amount, drawee bank and branch.
- Date of presentation, date of return and the reason in the memo.
- Date of notice, mode of dispatch, date of delivery (or refusal), and the drawer’s reply, if any.
- Failure to pay within 15 days, and the date the cause of action arose.
- Facts showing limitation and jurisdiction are satisfied.
- The prayer: summon, try and punish the accused under section 138, and award compensation.
In Sanjabij Tari v. Kishore S. Borcar (25 September 2025), the Supreme Court directed that every complaint carry a synopsis in a prescribed format at the front. Check the format your High Court or district court has notified.
Documents to file
| Document | Why |
|---|---|
| Original cheque | Primary evidence; keep certified photocopies |
| Original return memo | Proves dishonour; section 146 lets the court presume dishonour from the bank’s slip or memo, unless disproved |
| Copy of demand notice | Proves the statutory demand |
| Postal receipt, tracking report, delivery proof, e-mail or WhatsApp delivery screenshots | Proves service |
| Reply of the drawer, if any | Shows the defence raised |
| Documents of the debt (agreement, invoice, ledger, bank transfer) | Supports the legally enforceable liability |
| Evidence affidavit of the complainant | Section 145 allows the complainant’s evidence to be given on affidavit |
| Board resolution or authority letter (company) | Authority of the person filing |
| Affidavit verifying e-mail and mobile details of the accused | Supports electronic service of summons |
What happens after filing
Cognizance and summons
The Magistrate examines the complaint and the affidavit and, if satisfied, takes cognizance and issues summons. In Sanjabij Tari the Supreme Court indicated that no pre-cognizance summons to the accused under section 223 of the BNSS is needed in NI Act complaints. It also directed that summons be served through multiple modes, including e-mail, mobile number or WhatsApp where the complainant gives verified details, as well as dasti service by the complainant with an affidavit of service, and that the summons tell the accused about an online option to pay the cheque amount at the initial stage.
Summary trial
Section 143 directs summary trial. In a summary trial the Magistrate can impose imprisonment up to one year and a fine exceeding five thousand rupees. If a longer sentence may be needed, or summary trial is otherwise undesirable, the Magistrate must hear the parties, record reasons and try the case as a regular summons case. The trial should, as far as practicable, proceed day to day and the court is to try to finish it within six months of the complaint.
Interim compensation under section 143A
| Point | Rule |
|---|---|
| When | In a summary or summons trial, after the accused pleads not guilty; in other cases, after charge is framed |
| How much | Up to 20 per cent of the cheque amount |
| Time to pay | 60 days from the order, extendable by up to 30 days for sufficient cause |
| If the accused is acquitted | Complainant repays it with interest at the RBI bank rate, within 60 days (extendable by 30) |
| Recovery | As if it were a fine |
| Adjustment | Deducted from any fine or compensation finally awarded |
The power is discretionary. In Rakesh Ranjan Shrivastava v. State of Jharkhand, 2024 INSC 205, the Supreme Court held that interim compensation is not automatic: the court must see a prima facie case, weigh the defence, may consider the accused’s financial distress, and must record brief reasons for the amount.
Settlement and compounding
Section 147 makes every offence under the Act compoundable. In Meters and Instruments v. Kanchan Mehta, (2018) 1 SCC 560, the Supreme Court said that where the accused pays the cheque amount with interest and costs as assessed by the court, the court may close the proceedings. Sanjabij Tari revised the graded costs first set in Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663, so that settlement before defence evidence carries no extra cost while later settlement costs a percentage of the cheque amount. The full table is in our section 138 notice guide.
Punishment and appeal
On conviction, the drawer faces imprisonment up to two years, or fine up to twice the cheque amount, or both (section 138). In an appeal against conviction, the appellate court may order a deposit of at least 20 per cent of the fine or compensation awarded (section 148).
Free sample: skeleton of a section 138 complaint
IN THE COURT OF THE JUDICIAL MAGISTRATE FIRST CLASS, [PLACE]
Complaint Case No. ____ of [year]
[Name, address, phone, e-mail] … Complainant
versus
[Name, address, phone, e-mail] … Accused
COMPLAINT UNDER SECTIONS 138 AND 142 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
1. The accused owed the complainant Rs [ ] towards [loan dated [ ] / goods supplied under invoice no. [ ]].
2. In discharge of that liability the accused issued cheque no. [ ] dated [ ] for Rs [ ], drawn on [bank, branch].
3. The complainant deposited the cheque in his account with [bank, branch], within the jurisdiction of this Court. It was returned unpaid on [date] with the remark “[reason]”.
4. The complainant sent a demand notice dated [ ] by Speed Post and e-mail, delivered on [date]. The accused failed to pay the cheque amount within 15 days of receipt. The cause of action arose on [date], and this complaint is within the period prescribed by section 142(1)(b).
PRAYER: The complainant prays that this Court take cognizance, summon the accused, try and punish him under section 138 of the Act, direct interim compensation under section 143A, and award compensation equal to [twice] the cheque amount.
[List of documents]
[Signature, verification, date and place]
Need the complete, editable set? The Lexfolio Cheque Bounce Case Kit gives you editable formats for the full complaint, evidence affidavit, section 143A application and settlement terms, with a worked timeline table and filing checklist.
Common mistakes
- Filing before the 15 days run out, or after one month without a delay application.
- Filing in the drawer’s city when the cheque was deposited in your own account elsewhere.
- Omitting the directors in charge where the drawer is a company, or naming them without pleading their role.
- Not filing the original cheque and memo.
- Adding unrelated claims; recover other dues separately, for example after a legal notice for recovery of money.
Frequently asked questions
What is the time limit to file a cheque bounce case?
One month from the date the cause of action arises, which is the day after the 15 day payment period expires. Later filing needs a delay condonation application showing sufficient cause.
Can I file a cheque bounce case online?
Many district courts accept e-filing through the eCourts services, and the originals are then produced as directed. Check what your district court currently allows.
Do I need to appear in court every date?
The complainant’s evidence can be given on affidavit under section 145, which reduces appearances, but the complainant or authorised representative should attend when required for cross-examination.
Can I file a civil suit as well?
Yes. A section 138 complaint and a civil suit for recovery of the debt are separate remedies and can run side by side.
Is interim compensation automatic?
No. Section 143A uses “may”, and the Supreme Court has held it discretionary. Ask for it by a separate application at the right stage.
*This article is general information, not legal advice.*