Description
A cheque bounces and the clock starts ticking. Shopkeepers, traders, landlords and people who lent money to friends or relatives lose their strongest remedy every day simply because they present a cheque late, miss the 30-day notice window or file the complaint at the wrong time. Others receive a cheque bounce notice and panic, or ignore it until a warrant arrives. This course explains section 138 of the Negotiable Instruments Act, 1881 in plain language, with every time limit, section number and step you need, whether you are holding a bounced cheque or have received a notice.
What you will learn
- What a cheque is in law, its three-month validity, and how to read the bank’s return memo
- Which dishonour reasons attract section 138, and which are only technical returns
- The six ingredients of the offence, including what counts as a legally enforceable debt
- How to send a valid demand notice within 30 days, and how the 15-day payment period works
- When and where to file the complaint under section 142, including jurisdiction after the 2015 amendment
- The presumptions under sections 118 and 139, how they are rebutted, security cheques and company cheques under section 141
- Punishment, interim compensation (s.143A), appeal deposits (s.148), compounding (s.147) and the Supreme Court’s 2021 and 2025 directions
- Civil recovery through an Order XXXVII summary suit, what to do if you receive a notice, and model formats you can adapt
Who this course is for
Shopkeepers, traders and wholesalers, small business owners, landlords, people who lent money to friends or relatives, accounts staff, and anyone who has received a cheque bounce notice or summons. No legal background is needed.
How the course works
6 modules and 18 self-paced text lessons, each with worked examples using Indian names and cities and ending with key takeaways, and a 5-question quiz after each module. The last module gives you checklists, a master timeline with a worked example, and model formats for a demand notice, replies to a notice, a complaint outline and a settlement.
How the certificate works
- Final test of 30 multiple choice questions, mostly practical scenarios, with a 45-minute time limit
- Pass mark 60%; you can retry if you do not pass
- On passing, you receive a certificate with a unique ID that anyone can verify online at lexfolio.in/verify-certificate/
- This is a certificate of completion issued by Lexfolio. It is not a degree, diploma or professional qualification, and it does not entitle anyone to practise law
Access: after payment, open My account > Courses and start learning. Lifetime access.
This course is legal education, not legal advice for a specific case. Law as on 7 November 2026. For your own case, consult a lawyer or your District Legal Services Authority (NALSA helpline 15100).
Access: after payment, open My account > Courses (or the course page) and start learning. Lifetime access to this course.
Free guides for this course
- Cheque bounce reasons and what the bank return memo means
- Section 138 ingredients: what a complainant must prove
- Cheque bounce timeline: notice, 15 days and the 30 day complaint window
- Interim compensation (s.143A) and appeal deposit (s.148) in cheque bounce
- Cheque bounce defences for the accused and the s.139 presumption
- Settling a cheque bounce case: compounding under s.147
