Cheque Bounce (NI Act Section 138): The Process After 2025 Reforms: Frequently Asked Questions in Mumbai

In Mumbai, the following is general information on common questions on cheque bounce (ni act section 138) for someone in Mumbai.

Before the frequently asked questions

In Sanjabij Tari v Kishore S. Borcar (25 Sep 2025, effective 1 Nov 2025), the Supreme Court directed that summons in cheque bounce cases be served by the complainant both by hand (dasti) and electronically (email or WhatsApp, as state rules permit), with the complainant disclosing the accused's contact details on affidavit.

The same ruling directed district courts to set up QR/UPI payment links so an accused can make early payment conveniently, and expressed a preference for summary trial with a mandatory complaint synopsis.

Frequently asked questions

How is a cheque bounce case served on the accused now?

Since 1 November 2025, following Sanjabij Tari v Kishore S. Borcar, summons must be served both by hand (dasti) and electronically, such as by email or WhatsApp depending on the relevant state rules, with the complainant providing the accused's contact details on affidavit.

What does it cost to settle a cheque bounce case?

It depends on the stage. Settling before any defence evidence is led carries no compounding cost; after defence evidence but before judgment it is 5% of the cheque amount, rising to 7.5% on appeal or revision and 10% at the Supreme Court.

Relevant forums in Mumbai

• The High Court with jurisdiction is the Bombay High Court.
• Matters at the district level are generally handled at the Mumbai City Civil Court, or the Court of Small Causes for tenancy matters.

For a fuller explanation, see Recovering Money Owed to You: The Limitation Period and Your Options and Recovering Delayed Payments as an MSME.

Where this applies to a live matter, it is usually worth discussing it in a consultation before acting.

This is general, educational information and not legal advice. Specific facts can change the analysis, so a qualified advocate should review your situation before you act.