Definition: Section 138 of the Negotiable Instruments Act defines the offense of dishonor of a cheque for insufficiency of funds or if it exceeds the amount arranged to be paid by the drawer’s account.

Conditions for Filing a Complaint: To file a complaint for cheque bounce under Section 138, the following conditions must be met:

The cheque must have been presented to the bank within six months from the date mentioned on it or within its validity period.
The payee or holder of the cheque must serve a notice of demand for payment within 30 days of the cheque being dishonored.
The drawer of the dishonored cheque fails to make payment within 15 days of receiving the notice.
Penalties: If the drawer of the dishonored cheque is found guilty, they may face imprisonment for a term that may extend to two years and/or a fine that may extend to twice the amount of the cheque or with both.

Compounding: In many cases, the parties involved can reach a compromise and settle the matter by compounding the offense, subject to the court’s permission.

Jurisdiction: Cheque bounce cases are usually tried in the magistrate courts, and the complainant must file the case in the place where the bank is situated or where the cheque was presented.

Multiple Cheques: In the case of multiple dishonored cheques, the complainant can file separate complaints for each dishonored cheque.

Legal Recourse: If you are a payee or holder of a dishonored cheque, you can file a complaint under Section 138 of the Negotiable Instruments Act. It’s important to retain the services of a qualified lawyer for proper legal representation and guidance in such cases.

Cheque bounce cases can be complex, and it’s crucial to follow the legal procedures and requirements precisely to ensure a successful prosecution. Additionally, legal requirements and procedures may change, so it is advisable to seek current legal counsel when dealing with such cases.