Cheque Bounce Case in Kolkata: Section 138 Notice, Timelines, Which Court, Interim Compensation and Settlement
If a cheque given to you for a debt bounces for insufficient funds or because the account is closed or payment is stopped, you can file a criminal complaint under section 138 of the Negotiable Instruments Act. You must send a written demand notice to the drawer within 30 days of receiving the bank’s return memo, give 15 days to pay, and if not paid, file the complaint within one month after those 15 days, in the court within whose area your bank branch (where you deposited the cheque) is located. The court can order the drawer to pay interim compensation of up to 20% of the cheque amount. Punishment is up to two years’ imprisonment, a fine up to twice the cheque amount, or both, and the case can be settled at any stage.
The timeline
| Step | Time limit |
|---|---|
| Present the cheque | Within its validity (three months from the date on it) |
| Bank returns it unpaid | Return memo with the reason |
| Send a demand notice | Within 30 days of receiving the return memo |
| Drawer’s time to pay | 15 days from receiving the notice |
| File the complaint | Within one month after the 15-day period ends |
Delay in filing can be condoned by the court for sufficient cause, but do not rely on it.
What the notice must contain
- Cheque number, date, amount and bank.
- Date and reason of dishonour.
- Demand for payment of the cheque amount within 15 days.
- Sent by registered post or courier with proof, and preferably also by email and WhatsApp.
Which court in Kolkata?
Since the 2015 amendment, the complaint is filed in the court of the Metropolitan Magistrate (in Kolkata) or Judicial Magistrate within whose jurisdiction the branch of the bank where the payee presented the cheque is situated. A Kolkata business that deposits cheques in its Kolkata branch files in Kolkata, even if the drawer is in Delhi or Bihar.
Documents for the complaint
- Original cheque and the bank return memo.
- Copy of the demand notice and postal or courier receipts, and delivery proof.
- Evidence of the debt: invoices, ledger, agreement, loan documents.
- Board resolution or authority letter if the complainant is a company.
- Affidavit of evidence, as courts often allow evidence on affidavit.
Interim compensation and appeal deposit
- The court can order the accused to pay up to 20% of the cheque amount as interim compensation within 60 days.
- If convicted and the accused appeals, the appellate court can require a deposit of at least 20% of the fine or compensation.
These provisions have made settlements more common.
Settlement
Cheque bounce cases are compoundable. Most cases settle before the court or in mediation, sometimes in instalments. If you settle, get the full amount or a court-recorded settlement before withdrawing.
Civil recovery alongside
You can file a civil suit for recovery or a summary suit in addition to the criminal complaint. For MSMEs with Udyam registration, a claim before the MSE Facilitation Council is another option; see our guide on MSME delayed payment complaints in West Bengal.
For businesses: prevent cheque problems
- Prefer bank transfers and UPI for large amounts.
- For post-dated cheques, keep a register and deposit on time.
- Take security cheques only with a clear written agreement on when they can be presented.
Example: a supplier in Burrabazar
A textile supplier received a ₹4.2 lakh cheque from a retailer in Siliguri, deposited it in its Burrabazar bank branch, and got it back marked “funds insufficient” on 3 March. It sent a demand notice by speed post and email on 20 March, delivered on 23 March. The retailer did not pay within 15 days (by 7 April). The supplier filed its complaint in the Kolkata court on 2 May, within one month after the 15 days expired. At the first hearing the court issued summons; after appearance, the court directed 20% interim compensation, and the parties settled in three instalments recorded before the court.
Defences you may face
- The cheque was given as security, not for a debt then due.
- No legally enforceable debt existed.
- The notice was not received or was defective.
- The complaint was filed late or in the wrong court.
- For companies, the person sued was not in charge of the business.
A clean record of invoices, ledger confirmations and the delivery of the notice answers most of these.
Company and firm cheques
When a company’s cheque bounces, the company and every person in charge of and responsible for its business at the time, such as managing directors and signatories, can be prosecuted. Independent directors are usually not liable unless specific involvement is shown.
FAQs
What is the time limit to send a cheque bounce notice?
Within 30 days of receiving the bank’s return memo.
Where do I file a cheque bounce case in Kolkata?
In the court where the bank branch in which you presented the cheque is located.
Can a cheque bounce case be settled?
Yes. It is compoundable at any stage.
What is the punishment for cheque bounce?
Up to two years’ imprisonment, a fine up to twice the cheque amount, or both.
Can a cheque bounce notice be sent by WhatsApp?
Courts have accepted notices sent by email or WhatsApp in some cases, but send it by registered post or courier as well for proof.
What if the drawer pays after the complaint is filed?
The case can be compounded and closed with the court’s permission once payment and any costs are settled.
TAXAJ, with its legal team, sends demand notices and files cheque bounce complaints for businesses in Kolkata. Talk to our Kolkata team.
Last updated 11 November 2026. Sources: Negotiable Instruments Act, 1881, sections 138, 141, 142, 143, 143A, 147 and 148 (as amended in 2015 and 2018). General information only; take legal advice on your facts.
