Cheque bounce isn’t just about a dishonored piece of paper — it’s about broken trust, unfulfilled liability, and the fight for rightful dues. Whether you’re a litigant in Maharashtra or a new advocate at Belapur Court, this guide breaks down the entire process of handling a Section 138 NI Act case, including execution under the new BNSS laws (2024).
🧑⚖️ Step 1: Start Strong — What a Lawyer Must Ask
A good case starts with solid facts. When a client walks in with a cheque bounce problem, your job is to extract every relevant detail:
Essential Client & Cheque Info:
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Client’s name, contact, and address
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Drawer (accused)’s details
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Cheque number, date, amount, and bank details
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Purpose of cheque (Loan? Goods sold? Partnership dues?)
Why? Because the complainant must show legally enforceable debt or liability, as required under Section 138 of the Negotiable Instruments Act.
Dishonor Details:
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Date of cheque return
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Return memo reason: “Funds Insufficient”, “Account Closed”, etc.
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Copy of the bounced cheque & return memo
Legal Notice Status:
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Was a legal notice issued within 30 days?
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How was it sent — Speed Post? Courier? WhatsApp/email?
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Proof of delivery?
Post-Bounce Follow-up:
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Any partial or post-dated payments?
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Did the drawer issue more bounced cheques?
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Any talks for compromise or settlement?
These answers shape the direction: trial or settlement.
Step 2: Issue Legal Notice (Section 138)
If no payment is made after the dishonor, you must issue a legal notice within 30 days, demanding payment within 15 days.
This step is mandatory under NI Act. Your notice should include:
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Cheque details
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Dishonor info
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The amount due and
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Intent to prosecute under Section 138 if payment isn’t made
Keep proof of dispatch — postal receipt, tracking report, and preferably an affidavit.
Step 3: File Section 138 Complaint (Magistrate’s Court – Belapur)
If 15 days lapse without payment, file a criminal complaint under Section 138.
Jurisdiction Tip: Thanks to the Dashrath Rupsingh Rathod (2014) judgment, jurisdiction lies where the payee’s bank is located — the one that returned the cheque.
So if the cheque was deposited in Mumbai, you file in Mumbai Court (or Belapur, if that’s where it was bounced).
Step 4: Settlement Memo vs Full Trial
During proceedings, if both parties want to resolve:
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File a Compromise Memo or
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Opt for Lok Adalat Memo
The case can be compounded and closed under Section 147 of NI Act.
If not, prepare for a full trial, including:
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Affidavit-in-chief of complainant
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Cross-examination
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Final arguments
Step 5: Conviction Secured — But What If Payment Is Not Made?
Winning the case is just half the job. Many times, even after conviction and compensation order, the drawer does not pay.
Here’s where BNSS (Bharatiya Nagarik Suraksha Sanhita, 2023) comes into play.
Step 6: Execute the Compensation Order (Post-BNSS Execution Process)
Under BNSS, the old CrPC’s Section 421 and 431 are now replaced by:
Section 465 BNSS – Recovery of Fine/Compensation
The court may:
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Attach and sell any movable/immovable property of the drawer
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Issue distress warrants
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Forward order to District Magistrate for enforcement like land revenue recovery
Section 472 BNSS – Compensation Execution
Specifically deals with compensation awarded under criminal law, and allows it to be enforced like a civil decree.
You can now:
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Move execution application to attach bank accounts, vehicles, flats, or other assets
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Seek garnishee orders
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Request non-bailable warrant for willful default
Step 7: Format of Execution & Attachment Applications
In Belapur or any trial court, your draft should mention:
Execution Application U/S 465 BNSS r/w Section 138 NI Act:
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Date of conviction and fine/compensation order
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No payment made till date
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Prayer: Issue attachment of property, or distress warrant, or authorize DM for land recovery
Application for Property Attachment:
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Details of known properties
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Prayer for interim orders to protect those assets
Landmark Judgments You Must Know
Use these to support your enforcement:
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K. Bhaskaran v. Sankaran Vaidhyan Balan (1999): Jurisdiction clarification under NI Act
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Dashrath Rupsingh Rathod (2014): Bounced cheque jurisdiction at complainant’s bank
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R. Vijayan v. Baby (2011): Compensation must be practical and enforced
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Sivasuriyan v. Thangavelu (2004): Court can proceed to recover unpaid amounts via execution
Arrest & Jail FAQs (Post-BNSS):
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Is cheque bounce bailable? Yes. It’s a bailable offence. Even if warrant is issued, bail is allowed.
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Can drawer be jailed? Yes, after conviction — typically up to 2 years.
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If convicted and still refuses to pay? Court may enforce property attachment and/or issue coercive steps like imprisonment for non-compliance.
Final Word: Justice Doesn’t Stop at Conviction — You Must Recover
Most complainants think the fight ends at conviction. The truth? The real legal battle is recovering what’s yours.
Thanks to BNSS and Section 138 of NI Act, you can:
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Secure compensation
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Attach property
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Enforce recovery like a civil money decree
This makes your legal strategy stronger, smarter, and result-oriented.
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