Cheque Bounce Case at Alipore Court — Section 138 NI Act Complete Guide 2026 | Advocate Gajanan Shaw

Understanding Cheque Bounce Cases at Alipore Court

Cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881, constitute a significant portion of the caseload at Alipore Court. Section 138 criminalizes the dishonor of a cheque due to insufficient funds or because the amount exceeds the arrangement with the bank. At Alipore Court, these complaints are filed before the Metropolitan Magistrate or Judicial Magistrate having territorial jurisdiction — typically where the drawee bank (the bank of the person who deposited the cheque) is located, as clarified by the Supreme Court in Dashrath Rupsingh Rathod v. State of Maharashtra (2014) and the subsequent amendment to the NI Act (Section 142).

The Alipore Court complex, on Judges Court Road, handles NI Act cases from South Kolkata and parts of South 24 Parganas. The court is well-connected — accessible via Jawaharlal Nehru Road, with the Jatin Das Park metro station approximately 3 km away. Advocate Gajanan Shaw has extensive experience in cheque bounce cases at Alipore Court and across all Kolkata courts. Call +91 62914 78974 for immediate assistance with a cheque bounce matter.

Step-by-Step Procedure for Section 138 NI Act at Alipore Court

The legal procedure under Section 138 NI Act follows a strict statutory timeline. Missing any deadline can be fatal to the case:

Step 1: Cheque Dishonor and Bank Memo

The cheque is presented by the payee to their bank within its validity period (3 months from the date on the cheque). The bank returns the cheque unpaid with a cheque return memo stating the reason — 'funds insufficient,' 'exceeds arrangement,' 'payment stopped by drawer,' 'account closed,' etc. Only dishonor for insufficient funds or exceeding arrangement triggers Section 138. Obtain the bank memo — this is the foundational document.

Step 2: Statutory Legal Notice (within 30 days)

The payee MUST send a legal demand notice to the drawer of the cheque within 30 days of receiving the bank's dishonor memo. The notice must specify: the cheque details (number, date, amount), the bank memo details, a demand for payment of the cheque amount within 15 days, and a warning that failure to pay will result in prosecution under Section 138. The notice must be sent by registered post with acknowledgment due (RPAD) or speed post to the correct address of the drawer. The 30-day deadline is SACROSANCT — if the notice is not sent within 30 days, the cause of action under Section 138 does not arise.

Step 3: 15-Day Waiting Period

The drawer has 15 days from the date of RECEIPT of the legal notice to make the payment. The 15-day period starts from the date the notice is actually received, not the date it was sent. If the drawer makes the payment within 15 days, no offence is committed, and the matter is resolved.

Step 4: Filing the Complaint (within 30 days after the 15-day period)

If the drawer fails to pay within 15 days, the cause of action accrues, and the payee must file a criminal complaint before the magistrate at Alipore Court within 30 days. The complaint must be accompanied by: the original cheque, the bank return memo, a copy of the legal notice, the postal receipt and acknowledgment card (or returned envelope if undelivered), an affidavit in support, and the list of witnesses. The complaint must be filed within the limitation period — one month from the date on which the cause of action arose (the 16th day after receipt of notice). The court examines the complainant under Section 200 CrPC and may direct an inquiry under Section 202 before issuing process.

Step 5: Issuance of Summons and Trial

If the magistrate is satisfied that a prima facie case is made out, summons is issued to the accused (the drawer of the cheque). The accused appears, is supplied with copies of documents, and pleads guilty or not guilty. If not guilty, the trial proceeds — the complainant's evidence is recorded (the complainant, bank official, and other witnesses), the accused is examined under Section 313 CrPC, defence evidence (if any) is presented, and final arguments are heard. The trial is summary in nature — intended to be completed within 6 months from the date of filing.

Step 6: Judgment and Sentencing

If convicted, the punishment under Section 138 is imprisonment of up to 2 years, or a fine of up to twice the cheque amount, or both. Courts typically impose a fine (compensation) up to twice the cheque amount, with a default sentence of imprisonment if the fine is not paid. The fine is paid as compensation to the complainant under Section 357 CrPC.

Defences Available in Cheque Bounce Cases at Alipore Court

Common defences raised by accused persons at Alipore Court include: (1) The cheque was given as security/collateral, not for discharge of a legally enforceable debt or liability. (2) The cheque was stolen, lost, or misused by the complainant. (3) No legally enforceable debt existed — for example, a time-barred debt or an illegal consideration. (4) The cheque was signed under duress or fraud. (5) The signature on the cheque is not that of the accused. (6) The statutory notice was not received (or was sent to the wrong address). (7) The complaint was filed beyond the limitation period. Under Section 139, NI Act, there is a presumption that the cheque was issued for a legally enforceable debt. The burden is on the accused to rebut this presumption on a preponderance of probabilities — not beyond reasonable doubt.