Section 138 Negotiable Instruments Act: Cheque Bounce Complaint Format
A practical guide and adaptable criminal complaint specimen for dishonour of a cheque issued towards a legally enforceable debt or other liability in India.
Important: This is a model format, not a ready-to-file pleading. Replace every blank, verify the transaction, dates, statutory notice, court jurisdiction and exhibits, and obtain legal review before filing. The overseas recruitment facts below are illustrative and must not be asserted unless true.
What is an offence under Section 138?
Section 138 of the Negotiable Instruments Act, 1881 penalises dishonour of a cheque drawn by a person on an account maintained by that person for payment of a legally enforceable debt or liability, subject to the statutory conditions. The punishment may extend to imprisonment for two years, or fine up to twice the cheque amount, or both. A dishonour with the remark account closed may attract Section 138, subject to proof of the remaining ingredients.
The law also covers cheques issued towards an existing enforceable liability even when originally delivered as security, if the liability had crystallised when presented. Mere dishonour, without the other statutory conditions, does not automatically establish guilt.
Key statutory provisions
| Provision | Meaning and practical effect |
|---|---|
| Section 138, NI Act | Dishonour offence, statutory demand notice, 15-day payment opportunity and prescribed punishment. |
| Section 139, NI Act | Rebuttable presumption that the holder received the cheque towards discharge, in whole or part, of a debt or liability. |
| Section 142, NI Act | Complaint by payee or holder in due course; ordinarily within one month after cause of action arises, with power to condone delay for sufficient cause. |
| Section 142(2), NI Act | Territorial jurisdiction generally follows the payee's bank branch where the cheque is delivered for collection through an account; different rule where presented otherwise than through an account. |
| Sections 143 and 145, NI Act | Summary-trial framework and complainant's evidence by affidavit, subject to statutory safeguards. |
| Sections 143A and 148, NI Act | Discretionary interim compensation in qualifying trials and appellate deposit rules, respectively; neither is automatic. |
| Sections 146 and 147, NI Act | Bank memo as prima facie evidence of dishonour and compoundability of NI Act offences. |
| BNSS, 2023 | General criminal procedure for proceedings governed by the new procedural law, subject to applicable savings and transition rules. |
Official legislation: India Code (search for the Negotiable Instruments Act, 1881 and the Bharatiya Nagarik Suraksha Sanhita, 2023). Court filings and orders may be checked through the eCourts portal.
Time limits for filing a cheque dishonour complaint
- Presentation: Present the cheque within its validity period. Banking practice ordinarily restricts validity to three months from its date, unless a shorter period applies.
- Demand notice: Issue a written demand for the cheque amount within 30 days after receiving information from the bank that the cheque was returned unpaid.
- Payment opportunity: The drawer has 15 days from receipt of the statutory notice to make payment.
- Complaint: If payment is not made, the cause of action arises after expiry of those 15 days; file the complaint within one month as prescribed by Section 142(1)(b), subject to possible condonation.
Calculate limitation using the actual dates and legally applicable rules. A criminal complaint is not founded on a perpetual or continuing cause of action merely because the amount remains unpaid.
Sample Section 138 cheque bounce criminal complaint
IN THE COURT OF THE LEARNED JUDICIAL MAGISTRATE FIRST CLASS / METROPOLITAN MAGISTRATE AT __________
Complaint Case No. ______ of 20____
In the matter of:
Mr./Ms. __________________, residing at __________________
Complainant
VERSUS
Mr./Ms. __________________, residing at __________________
Accused
COMPLAINT UNDER SECTION 138 READ WITH SECTION 142 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
MOST RESPECTFULLY SHOWETH:
1. The complainant is engaged in the business of travel agency and coordinating with travel agents as a sub-agent for overseas staff recruitment, having an office at __________________. The complainant is the payee/holder in due course of the cheque(s) described below and is competent to institute this complaint.
2. In __________, the accused approached the complainant and represented that the accused could arrange overseas placement for 50 staff members for employment in Qatar. The accused requested a refundable security deposit of Rs. __________ per candidate and represented that recruitment would be completed within 45 days, failing which the deposit would be refunded. These terms are evidenced by __________________.
3. Acting upon those representations, the complainant paid a total of Rs. __________ to the accused in instalments on __________ towards security deposits for __________ candidates. Payment details and supporting records are annexed as Annexure(s) __________.
4. The recruitment was not completed within the agreed period. Under the agreed refund terms, the accused became liable to repay Rs. __________ on __________. In discharge of that subsisting and legally enforceable refund liability, the accused issued the following cheque(s), drawn on the accused's bank account:
| Cheque no. | Date | Bank / branch | Amount (Rs.) |
|---|---|---|---|
| ________ | ________ | ________ | ________ |
| ________ | ________ | ________ | ________ |
| ________ | ________ | ________ | ________ |
5. The complainant presented the cheque(s) through the complainant's bank, namely __________ branch __________, on __________ within their validity. The cheque(s) were returned unpaid under bank return memo(s) dated __________ bearing the remark(s) "ACCOUNT CLOSED" / __________. Copies of the cheque(s) and return memo(s) are annexed.
6. Upon receipt of information of dishonour on __________, the complainant issued a written statutory demand notice dated __________ through counsel / personally, demanding payment of the cheque amount within 15 days of receipt. The notice was dispatched on __________ by __________ to the accused's correct address, supported by postal receipts, tracking records and delivery evidence annexed herewith.
7. The notice was served / deemed served on __________ on the basis of __________. Despite expiry of 15 days from receipt of the notice, the accused failed to pay the cheque amount. The complainant relies on the notice and proof of service, subject to adjudication by this Hon'ble Court.
8. The accused's cheque(s) were drawn on an account maintained by the accused and issued towards the aforesaid legally enforceable liability. The cheque(s) were presented within validity, dishonoured, followed by timely written demand notice, and the accused failed to pay within the statutory period. Accordingly, the ingredients of Section 138 are satisfied, subject to evidence and the statutory presumptions.
9. The cause of action arose on __________ after expiry of 15 days following receipt of notice. This complaint is filed within the limitation prescribed by Section 142(1)(b). [If delayed, state the actual delay and move a separate application seeking condonation with reasons.]
10. This Hon'ble Court has territorial jurisdiction under Section 142(2)(a) of the NI Act because the cheque(s) were delivered for collection through the complainant's account maintained at __________ branch situated within its jurisdiction. [Where presented otherwise than through an account, verify and plead the rule under Section 142(2)(b).]
11. The complainant relies on the original cheque(s), bank return memo(s), agreement / communications regarding the refundable deposit, proof of payment, statutory demand notice, dispatch and service records, and other admissible evidence. The list of documents and witnesses is annexed.
12. The complainant reserves the right, where legally maintainable and factually supported, to pursue separate remedies for recovery or other offences. No separate offence of cheating is alleged in this complaint solely on the basis of cheque dishonour.
PRAYER
In the circumstances, it is respectfully prayed that this Hon'ble Court may be pleased to:
- Take cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881, and issue process against the accused in accordance with law;
- Upon trial and proof, convict and sentence the accused in accordance with Section 138;
- Consider lawful compensation and other monetary relief within the court's powers, including applicable provisions of the NI Act and criminal procedure law, as warranted by the facts;
- Grant such other relief as this Hon'ble Court considers fit and proper.
Place: __________
Date: __________
COMPLAINANT
Through Counsel
__________________
ADVOCATE
VERIFICATION
I, __________________, the complainant above named, verify that paragraphs __________ to __________ are true to my knowledge and the remaining submissions are based on records and legal advice believed to be correct. Verified at __________ on __________.
Signature of Complainant: __________
Documents normally required
- Original dishonoured cheque(s) and bank return memo(s).
- Contract, correspondence and bank records establishing the enforceable debt or refundable deposit.
- Copy of the statutory demand notice and dispatch / delivery evidence.
- Computation of limitation, list of witnesses and supporting affidavit as required by the court.
- Authorisation or power of attorney if the complaint is filed through an authorised representative.
Practical legal points
Security cheques: A cheque labelled as security is not automatically excluded from Section 138. The key question is whether a legally enforceable debt or liability existed when the cheque was presented.
Cheating allegation: Dishonour alone does not establish fraudulent intention at the inception of a transaction. Where independent facts establish deception, separate penal provisions may require consideration. For conduct governed by the post-1 July 2024 penal law, the Bharatiya Nyaya Sanhita, 2023, may apply; older conduct may engage the Indian Penal Code subject to applicable law.
Compensation: Twice the cheque amount is the statutory ceiling for a fine under Section 138, not an automatic entitlement to compensation. The court determines the lawful order on the facts and governing provisions.
Procedure: The Bharatiya Nagarik Suraksha Sanhita, 2023, generally replaced the Code of Criminal Procedure, 1973, from 1 July 2024, subject to savings and transitional rules. The special provisions of the NI Act continue to apply.
This specimen is for general legal information and must be adapted to current court rules, judicial precedents and the particular evidence in each case.