How do I file a cheque bounce case against a company in Delhi?

"Cheque bounce cases involving companies require specific legal procedures. If a business in Delhi has defaulted on a payment, you must hold both the company and its responsible officers accountable under Section 138 of the NI Act."

💡Easy Answer

A cheque bounce (Dishonour) is a criminal offense under Section 138 of the Negotiable Instruments Act. When a company issues the cheque, it is treated as a 'Juristic Person.' To succeed in Delhi courts, you must strictly follow the statutory timelines: 1) Present the cheque within 3 months; 2) Receive the 'Bank Return Memo'; 3) Send a Legal Demand Notice within 30 days of the memo; 4) Wait 15 days for payment. If no payment is made, you must file the complaint within the next 30 days. In Delhi, these cases are usually filed in the Digital Courts or the Metropolitan Magistrate Court where your bank is located (if the cheque was deposited for collection).

🚀 What you should do

1. 1Preserve the 'Original Cheque' and the 'Bank Return Memo' (showing the reason for dishonor, usually 'Funds Insufficient').
2. 2Identify the 'Directors' or 'Authorized Signatories' who were in charge of the company's affairs at the time the cheque was issued.
3. 3Send a 'Statutory Legal Notice' via Registered Post/Speed Post to the company’s registered office and the responsible directors.
4. 4Ensure the notice gives them exactly 15 days to pay the amount; keep the 'Postal Receipts' and 'Tracking Reports' as proof of service.
5. 5If the 15-day period expires without payment, draft a 'Criminal Complaint' and file it in the appropriate Delhi District Court.
6. 6Prepare an 'Affidavit of Evidence' and be ready to appear for the 'Pre-summoning Evidence' where the Magistrate will examine your documents.