Client Feedback
since 2008 practice
Criminal Law Practice
Allahabad High Court
Across Uttar Pradesh
Regional coverage
Timely Response
Quick turnaround
Confidential Discussion
Private consultation
When a cheque is dishonoured for "insufficient funds" or "stop payment," the payee has a powerful legal remedy under Section 138 of the Negotiable Instruments Act 1881. Unlike a civil suit for money recovery that can take years, Section 138 NI Act cases proceed in Magistrate Court under a time-bound process — with the possibility of interim compensation of 20% of the cheque amount even before the case is decided. The Magistrate can convict the accused with imprisonment up to 2 years and award compensation up to double the cheque amount. However, the procedure is strict — the legal notice must be sent within 30 days of dishonour and the complaint must be filed within 30 days of the notice period expiring. Miss these deadlines and the case is barred. Whether you are the payee seeking to recover your money or the accused defending against a Section 138 complaint, Advocate Faizan Siddiqui handles cheque bounce cases across Lucknow and UP. Call +91-9911387328.
Also see: Cheque Bounce Lawyer Lucknow Section 138 NI Act → — full case details, process, cities covered.
Section 138 NI Act — The Complete Filing Process
Filing a Section 138 case requires strict compliance with the statutory procedure. A single procedural error — wrong notice period, improper demand, or delay in filing — can defeat an otherwise valid claim. Advocate Faizan Siddiqui handles the entire process from legal notice to conviction.
- Step 1 — Dishonour memo from bank received — this is the starting date for all deadlines
- Step 2 — Legal notice sent within 30 days of receiving dishonour memo — specifying cheque details and demanding payment
- Step 3 — 15-day period for drawer to make payment — if paid, case ends
- Step 4 — If not paid within 15 days, complaint filed in Magistrate Court within 30 days
- Step 5 — Court takes cognizance, issues summons to accused
- Step 6 — Interim compensation under Section 143A — court can award up to 20% of cheque amount pending trial
- Step 7 — Trial — evidence of cheque, dishonour, notice, and non-payment
- Step 8 — Conviction carries imprisonment up to 2 years and/or double the cheque amount as compensation
Defending a Section 138 Case — Key Arguments
Not every Section 138 complaint will succeed. There are several strong defences available — ranging from procedural defects in the complaint to substantive defences on the merits. Advocate Faizan Siddiqui handles cheque bounce defence cases across Lucknow courts.
- Cheque not issued for a "legally enforceable debt" — blank cheque, security cheque, gift
- Notice sent to wrong address — not the address on the cheque or known to the accused
- Notice period computation error — 30 days not properly counted from actual dishonour date
- Complaint filed beyond limitation — 30-day filing window missed by complainant
- Cheque was returned for reasons other than insufficient funds (signature mismatch)
- Full payment made within the 15-day notice period — extinguishes criminal liability
- Accused already convicted / complaint is a second complaint for same cheque dishonour
- Compounding — settlement between parties: accused pays, court allows compounding
Need assistance with a legal issue?
Faizan Sir responds as required by the matter — call or WhatsApp
Interim Compensation Under Section 143A NI Act
A major 2018 amendment introduced Section 143A, allowing courts to direct an accused to pay interim compensation of up to 20% of the cheque amount at the time of framing of charge or appearance. This is a powerful tool for the complainant — getting partial compensation early. If the accused is ultimately acquitted, the interim compensation is refunded with interest.
- Section 143A — discretionary power to award up to 20% of cheque amount as interim compensation
- Payable within 60 days of court direction, extendable by 30 days
- Appellate court can direct higher interim compensation
- Refundable with 9% interest if accused acquitted at end of trial
- Non-payment of interim compensation — court can recover it as fine
Cheque Bounce and Civil Recovery Together
A Section 138 case does not prevent simultaneously filing a civil suit for money recovery of the same cheque amount. Some creditors pursue both tracks — criminal complaint for pressure and conviction, civil suit for a money decree and execution. Advocate Faizan Siddiqui advises on the optimal strategy combining both where the cheque amount is significant.
Types of Cases We Handle
Section 138 NI Act Legal Notice Drafting
Section 138 Complaint Filing in Lucknow
Section 138 Defense (Accused Side)
Interim Compensation Application (143A)
Cheque Bounce Case Trial Representation
Compounding / Settlement in Section 138
Appeal Against 138 Conviction
Revision Against Acquittal in 138 Case
Multiple Cheque Bounce Cases (Bulk)
Civil Money Recovery Alongside 138
About Lucknow — Section 138 NI Act at Allahabad High Court
Legal representation at Allahabad High Court — contact our office for a legal enquiry.
Log Yeh Bhi Poochte Hain(Hindi / Hinglish)
Yeh sawal log voice search ya Hindi mein Google pe poochte hain.
Frequently Asked Questions
Prompt Legal Response
About Lucknow — Section 138 NI Act at Allahabad High Court
Legal representation at Allahabad High Court — contact our office for a legal enquiry.
Related Legal Services
Civil Lawyer Prayagraj
Civil money recovery suits alongside Section 138 criminal complaint for same debt.
Learn MoreProperty Dispute Lawyer Allahabad
When cheque dishonour arises from a property transaction or sale dispute.
Learn MoreCriminal Lawyer Allahabad
IPC 420 cheating cases that may accompany large-value cheque dishonour fraud.
Learn MoreFIR Quashing Lawyer Allahabad
Quash false IPC 420 FIR filed alongside Section 138 to pressurise accused.
Learn MoreNRI Lawyer Allahabad
NRI creditors recovering Indian cheque dishonour amounts from abroad.
Learn More