What is a cheque-bounce case?

A cheque-bounce case is a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881, filed when a cheque issued towards a legally enforceable debt or liability is returned unpaid for insufficiency of funds or because it exceeds the arrangement. The offence is punishable with imprisonment up to 2 years and/or fine up to twice the cheque amount. While the procedural code today is BNSS, complaints under S. 138 are governed by the special procedure in Sections 142–147 of the NI Act itself.

Procedure — from bounced cheque to complaint

(i) The cheque is presented within 3 months and returns with a banker’s memo (“insufficient funds” / “stop payment” / “account closed” / “exceeds arrangement”). (ii) A statutory demand notice is sent within 30 days of return demanding payment within 15 days. (iii) If payment is not received within 15 days, a complaint must be filed within 30 days before the Judicial Magistrate having territorial jurisdiction. After the 2015 amendment, jurisdiction is the place where the payee’s bank is located.

What you must prove (and what the accused must rebut)

Once the complainant proves issuance, presentation, return and notice, Section 139 NI Act raises a presumption that the cheque was issued for a legally enforceable debt. The burden shifts to the accused to rebut this on preponderance of probabilities — see Rangappa v. Sri Mohan (2010) 11 SCC 441 and Bir Singh v. Mukesh Kumar (2019). Mere denial is not enough; the accused must lead positive evidence of why the cheque is not towards a debt.

Interim compensation under Section 143-A

Section 143-A NI Act (inserted in 2018) empowers the Magistrate to direct the drawer to pay up to 20% of the cheque amount as interim compensation within 60 days of the order, even before trial concludes. Section 148 allows the Appellate Court to direct minimum 20% deposit pending appeal. These are powerful levers used routinely in well-drafted complaints.

Local context — where to file in Kota

Cheque-bounce complaints arising out of accounts maintained at banks in Kota (SBI, PNB, BoB, HDFC, ICICI, Axis, IOB and others) are filed before the Judicial Magistrates at the District Court Complex, Civil Lines, Kota. Cases involving cheques drawn outside Kota may still be triable in Kota if the payee’s bank for collection was in Kota — see Dashrath Rupsingh Rathod and the 2015 amendment.