Common questions on cheque bounce (ni act section 138), explained in plain terms, under Indian law.
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.
For a fuller explanation, see Recovering Money Owed to You: The Limitation Period and Your Options and Recovering Delayed Payments as an MSME.
If you are weighing a decision on this, a short consultation can help map out the options.
This page is general information about the law in India and is not legal advice. The position can vary with the facts, so it is worth getting advice on your specific situation.
This page provides general information about the law in India and is not legal advice. For advice on your specific situation, please consult a qualified advocate.