Check Bounce

TITLE PAGE

CHECK BOUNCE – LEGAL OUTLOOK
A Practical, Procedural & Courtroom-Oriented Treatise on Cheque Dishonour Law

Authors:
Advocate Dr. (Hons.) Vinayak Chitlangi
Advocate Ravail Bhartiya

6×9 Premium Edition | 2025

PREFACE

Cheque bounce litigation forms nearly 30–35% of trial court criminal workload in India. Despite digitisation, the cheque continues to be a crucial instrument for business, loans, property transactions, partnership settlements, and commercial dealings.
This book is written from a courtroom lawyer’s perspective, combining procedure, strategy, evidence, cross-examinations, and the latest case laws.

**CHAPTER 1

INTRODUCTION TO CHEQUE LAW IN INDIA**

1.1 Cheque as an Instrument of Commerce

Cheques remain vital in business and personal finance. They ensure accountability and written proof of transactions.

1.2 Legislative Intent of Section 138 NI Act

  • Maintain credibility of commerce

  • Penalize wilful defaulters

  • Promote alternative to civil suits

  • Ensure fast-track recovery

1.3 Nature of Offence

Section 138 is:

  • Quasi-criminal

  • Strict liability

  • Technical in nature

  • Presumption-based (Sec 118, 139)

1.4 Interaction with New Criminal Codes

  • Substantive offence: NI Act

  • Procedure: BNSS

  • Evidence: BSA

  • Appeal/Revision: BNSS Chapter XXXIII

  • Digital Evidence: Admissible without primary proof (BSA Sec 63)

**CHAPTER 2

LEGAL FRAMEWORK UNDER NI ACT**

2.1 Key Sections

  • Sec 138 – Dishonour

  • Sec 139 – Presumption

  • Sec 141 – Corporate liability

  • Sec 142 – Cognizance

  • Sec 143 – Summary trial

  • Sec 143A – Interim compensation

  • Sec 147 – Compoundability

2.2 “Legally Enforceable Debt”

Meaning, scope, boundaries, defence challenges.

2.3 Presumptions Explained

Reverse onus concept – landmark cases:

  • Hiten P. Dalal v. Bratindranath Banerjee

  • Rangappa v. Sri Mohan

**CHAPTER 3

INGREDIENTS OF OFFENCE – THE 7 REQUIREMENTS**

  1. Drawing of cheque

  2. Account maintained by drawer

  3. Legally enforceable debt

  4. Presentation within 3 months

  5. Dishonour

  6. Statutory notice

  7. Failure to pay in 15 days

Each explained in depth with illustrations.

**CHAPTER 4

CHEQUE PRESENTATION & DISHONOUR**

4.1 Banker’s Duty

Return memo, marking codes.

4.2 Common Reasons for Dishonour

  • Insufficient funds

  • Signature mismatch

  • Stop payment

  • Account closed

  • Alteration

**CHAPTER 5

LEGAL NOTICE – DRAFTING, SERVICE & DEFECTS**

5.1 Essentials

  • Must demand payment

  • Must mention cheque details

  • Must be issued within 30 days

5.2 Validity

Speed Post, WhatsApp, Email, Courier – Latest case laws.

Model Notice (Full Draft Included)

**CHAPTER 6

CAUSE OF ACTION & LIMITATION**

The 30–15–30 Formula

  • 30 days to issue notice

  • 15 days waiting period

  • 30 days to file complaint

Detailed timelines with charts.

**CHAPTER 7

JURISDICTION UNDER BNSS**

New BNSS rules explained:
Place of:

  • Presentation

  • Dishonour

  • Notice service

  • Complainant’s bank

  • Accused’s bank

**CHAPTER 8

FILING OF COMPLAINT – COMPLETE PROCEDURE**

8.1 Checklist

  • Complainant affidavit

  • Cheque

  • Return memo

  • Notice + proof

  • Authority letter

8.2 Pre-summoning evidence

8.3 Summoning order

8.4 Bailable warrant/Surety stages

Full sample complaint draft included.

**CHAPTER 9

TRIAL UNDER BNSS – STAGE BY STAGE**

  1. Appearance

  2. Bail

  3. Plea recording

  4. Complainant evidence

  5. Cross-examination

  6. Accused statement

  7. Defence evidence

  8. Final arguments

  9. Judgment

**CHAPTER 10

PROSECUTION STRATEGY – HOW TO SECURE CONVICTION**

  • Prove debt

  • Attack defence contradictions

  • Use Sec 139 presumption strongly