In commercial and personal transactions across Kerala, cheques remain a common method of payment. However, a dishonoured or “bounced” cheque is more than just a financial inconvenience; it is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881. Understanding the correct legal procedure is critical to recovering your funds.
The First Step: The Demand Notice
The legal process for a cheque bounce case begins the moment the cheque is returned unpaid by the bank. The law provides a strict timeline that must be followed:
- You must send a formal legal demand notice to the person who issued the cheque (the “drawer”) within 30 days of receiving the “cheque return memo” from your bank.
- This notice must demand the payment of the cheque amount and state that you will initiate criminal proceedings if the payment is not made.
This demand notice is a mandatory prerequisite; failure to send it within the 30-day window can invalidate your entire case.
Filing the Criminal Complaint
After the drawer receives the legal notice, they have a period of 15 days to make the full payment. If they fail to do so, you then have the right to file a criminal complaint before the appropriate Magistrate’s Court. This complaint must be filed within one month from the expiry of the 15-day notice period.
“Adhering to the strict timelines for the legal notice and the filing of the complaint is absolutely critical for the success of a Section 138 case.”
Why Legal Expertise is Essential?
A cheque bounce case is a technical and procedure-driven area of civil and criminal law. From drafting a legally sound demand notice to filing the complaint with all necessary documentation and representing you in court, the guidance of an experienced advocate is essential. Professional legal counsel ensures that your case is built on a solid foundation and that all procedural requirements are met, maximising your chances of a successful recovery.
Facing a Legal Challenge?
If you are facing a situation that requires professional legal counsel, do not hesitate to seek it. Schedule a confidential consultation to discuss your case with an experienced advocate.
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