Cheque Bounce & NI Act
Section 138 cheque bounce: timeline, legal notice, where to file, director liability, settlement and the accounting entries.
10 guides · read in order or jump to what you need
01
Cheque bounce under section 138: what the law says
When a bounced cheque becomes a criminal offence, what the punishment is, and when section 138 does not apply.
02
Cheque bounce timeline: from return memo to complaint
The four deadlines in a section 138 case, with a worked date example.
03
Section 138 legal notice: format and checklist
A ready template for a cheque bounce demand notice, and the eight things it must get right.
04
Where to file a cheque bounce case and how it runs
Which court has jurisdiction, what the complaint needs, and what happens at each hearing.
05
Company or firm cheque bounced: who is liable?
How section 141 makes directors and partners liable, and who is protected.
06
Security cheques, stop payment and common defences
The presumption in the payee's favour, and the defences drawers raise most often, with how courts view them.
07
Interim compensation, appeals and settling a cheque case
Section 143A's 20% interim compensation, section 148's appeal deposit, and what it costs to settle at each stage.
08
Accounting and GST for a bounced cheque
Every entry from the bounce to recovery or write-off, for both the payee and the drawer, with the GST and TDS effect.
09
ECS/NACH bounce and civil recovery options
When an auto-debit fails, and the civil routes to recover money alongside or instead of a cheque case.
10
Customer hasn't paid: a step-by-step recovery plan
From a polite reminder to legal action: the practical steps, time limits and accounting for unpaid invoices.