Cheque Bounce Lawyer in
Lucknow — Section 138 NI Act

Section 138 NI Act — The Complete Filing Process

• 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

• 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

Interim Compensation Under Section 143A NI Act

• 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