Cheque Bounce Case under Section 138 NI Act in Varanasi – Complete Guide (2026)

Cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881 are among the most common criminal complaints filed in Varanasi courts. Whether arising from business transactions, personal loans, or property deals, a dishonoured cheque can lead to serious legal consequences.

Chamber for Justice regularly represents clients in Section 138 matters before the Varanasi District Courts and the Allahabad High Court.

What is Section 138 NI Act?

When a cheque is returned unpaid by the bank due to insufficient funds, account closure, stop payment instructions, or signature mismatch, the payee can file a criminal complaint under Section 138.

Step-by-Step Process in Varanasi

1. Cheque is dishonoured – Obtain the Cheque Return Memo from the bank.
2. Send Legal Notice – Must be sent within 30 days of receiving the return memo.
3. Waiting Period – The drawer gets 15 days to make the payment after receiving the notice.
4. File Complaint – If payment is not made, the complaint must be filed within the next 30 days in the competent court at Varanasi.
5. Court issues summons → Evidence → Arguments → Judgment.

Important Limitation Periods

Missing these timelines can make the case non-maintainable.

Documents Required

• Original bounced cheque
• Cheque Return Memo
• Copy of legal notice along with postal receipt / tracking report
• Proof of service of notice
• Identity proof of the complainant
• Vakalatnama

Punishment under Section 138

• Imprisonment up to 2 years, or
• Fine up to twice the cheque amount, or both
• Compensation may also be awarded

Possible Defences

• Cheque was given as security
• Debt already repaid
• Material alteration or signature mismatch
• Notice not properly served
• Complaint filed beyond limitation

Role of Allahabad High Court

Appeals against conviction and petitions for quashing of proceedings under Section 482 CrPC are filed before the Allahabad High Court.

Contact for Expert Assistance:
Phone: +91 9307441215, 9454730063
Email: info@chamberforjustice.com
Locations: Varanasi | Allahabad | Delhi