Cheque Dishonour | Criminal Complaint

Criminal Complaint Format under Section 138 of the Negotiable Instruments Act

Updated complaint template for prosecution after dishonour of a cheque issued towards a legally enforceable debt or liability, with the current statutory timeline, territorial jurisdiction, affidavit evidence, interim compensation and BNSS procedural context.

Do not file merely because a cheque has bounced. The statutory conditions under Section 138 must be satisfied, including presentation within validity, a written demand notice within 30 days of bank dishonour information, failure to pay within 15 days of receipt of notice, and filing of the complaint within the limitation prescribed by Section 142.
PresentationPresent the cheque within its statutory/validity period.
30 daysIssue the written demand notice within 30 days of receiving bank information of dishonour.
15 daysAllow the drawer 15 days from receipt of notice to pay the cheque amount.
1 monthFile the complaint within one month from the date the cause of action arises, subject to statutory condonation.

Current law for a Section 138 complaint

Section 138 of the Negotiable Instruments Act, 1881 applies where the cheque was issued for discharge, wholly or partly, of a legally enforceable debt or other liability and the statutory conditions are fulfilled. The punishment may extend to imprisonment for two years, fine up to twice the cheque amount, or both.

Section 142 requires a written complaint by the payee or holder in due course, ordinarily within one month from the date on which the cause of action arises under Section 138(c). The court may take cognizance after that period if sufficient cause for delay is shown. The offence cannot be tried by a court inferior to a Metropolitan Magistrate or Judicial Magistrate First Class.

Territorial jurisdiction under Section 142(2)

Where the cheque is delivered for collection through an account, the complaint is ordinarily filed before the court having jurisdiction over the branch where the payee or holder in due course maintains the account. Where the cheque is presented otherwise than through an account, jurisdiction is linked to the branch of the drawee bank where the drawer maintains the account.

A 2025 Supreme Court judgment reaffirmed that, after the 2015 amendment, the statutory rule in Section 142(2) governs territorial jurisdiction for Section 138 complaints. The older draft's broad statement that jurisdiction arose wherever the cheque was issued, payable or dishonoured has therefore been removed.

BNSS procedure and evidence

The Bharatiya Nagarik Suraksha Sanhita, 2023 has replaced the Code of Criminal Procedure, 1973 as the general criminal-procedure law from 1 July 2024, subject to savings and the special provisions of the Negotiable Instruments Act. Section 223 BNSS corresponds to the complaint-examination stage, while Section 227 deals with issue of process.

Section 145 of the Negotiable Instruments Act specifically permits the complainant's evidence to be given on affidavit. Section 146 provides that a bank slip or memo bearing the bank's official mark is prima facie evidence of dishonour unless disproved.

Current procedural caution: In 2026 the Supreme Court held, in the context of Section 223 BNSS, that the first proviso requiring an opportunity of hearing to the accused before cognizance is mandatory. Because Section 138 proceedings operate under a special statutory scheme, the precise procedural application should be checked against the latest binding judgment and local High Court practice at the time of filing.

Updated Criminal Complaint Format under Section 138 NI Act

This model preserves the substance of a standard cheque-bounce complaint while removing outdated references to IPC Section 420 and CrPC Section 357 as automatic components of a Section 138 case. Any separate allegation under the Bharatiya Nyaya Sanhita, 2023 should be pleaded only where its independent legal ingredients are actually made out.

IN THE COURT OF THE METROPOLITAN MAGISTRATE / JUDICIAL MAGISTRATE FIRST CLASS AT ____________

COMPLAINT CASE NO. ______ OF 20__

IN THE MATTER OF:

Complainant
Mr./Ms./M/s. ________________
Address: ________________________
VERSUS
Accused
Mr./Ms./M/s. ________________
Address: ________________________

Complaint under Sections 138 and 142 of the Negotiable Instruments Act, 1881

MOST RESPECTFULLY SHOWETH:

  1. The Complainant is ________________________________ and resides/carries on business at ____________________________________________. The Complainant is the payee / holder in due course of the cheque forming the subject matter of the present complaint.
  2. The Accused is ________________________________ and resides/carries on business at ____________________________________________.
  3. On or about ____________, the Accused became legally liable to pay the Complainant a sum of ₹____________ arising from loan / invoice / goods supplied / services rendered / settlement / other transaction, particulars whereof are: ____________________________________________________________.
  4. Towards discharge, in whole or in part, of the aforesaid legally enforceable debt or liability, the Accused issued Cheque No. ____________ dated ____________ for ₹____________, drawn on ________________ Bank, ______________ Branch, in favour of the Complainant.
  5. The Complainant presented the said cheque within its validity period through the Complainant's bank, namely ________________ Bank, ______________ Branch.
  6. The cheque was returned unpaid vide bank return memo dated ____________ with the reason "____________________________". The Complainant received information regarding dishonour on ____________.
  7. Within the period prescribed by law, the Complainant caused a written demand notice dated ____________ to be issued to the Accused demanding payment of the cheque amount. The notice was sent by Speed Post / Registered Post / courier / permitted electronic mode to the Accused at ____________________________________________. Proof of dispatch and service / tracking record is annexed.
  8. The statutory notice was received / deemed served on ____________. Despite expiry of 15 days from receipt of the notice, the Accused failed to pay the cheque amount of ₹____________.
  9. The cause of action for filing the present complaint arose on ____________, upon failure of the Accused to make payment within the statutory period. The present complaint is within the limitation prescribed by Section 142(1)(b) of the Negotiable Instruments Act, 1881. If there is any delay, an appropriate application for condonation is filed separately.
  10. This Hon'ble Court has territorial jurisdiction under Section 142(2) of the Negotiable Instruments Act because the cheque was delivered for collection through the Complainant's account maintained at __________________ Bank, __________________ Branch / other applicable statutory basis.
  11. The cheque was issued towards a legally enforceable debt or liability. The statutory presumption under Section 139 of the Negotiable Instruments Act is attracted, subject to rebuttal in accordance with law.
  12. The Complainant relies upon the original cheque / legally admissible cheque record, bank return memo, statutory demand notice, postal/courier/electronic dispatch and service records, and documents evidencing the underlying debt or liability.
  13. The Complainant is filing an affidavit/evidence affidavit as permissible under Section 145 of the Negotiable Instruments Act and shall produce such further evidence as may be directed by this Hon'ble Court.
  14. If the Accused is a company/firm, the Complainant states that the company/firm is arrayed as an accused and that the persons additionally arrayed under Section 141 were, at the relevant time, in charge of and responsible for the conduct of its business and/or are otherwise liable under Section 141(2), with specific factual averments stated separately for each such person.

PRAYER

It is therefore most respectfully prayed that this Hon'ble Court may be pleased to:

  1. take cognizance of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, in accordance with law;
  2. issue process/summons to the Accused and proceed with the complaint in accordance with the Negotiable Instruments Act and the applicable criminal-procedure law;
  3. upon trial, punish the Accused in accordance with Section 138 and award lawful fine/compensation, including compensation permissible under Section 395 of the Bharatiya Nagarik Suraksha Sanhita, 2023, as applicable;
  4. where legally appropriate, consider an application for interim compensation under Section 143A of the Negotiable Instruments Act; and
  5. pass such other order as this Hon'ble Court may deem just and proper in the facts and circumstances of the case.

Place: ____________

Date: ____________

COMPLAINANT

Through Counsel
____________________________, Advocate

Verification

I, ____________________________, the Complainant above named, do hereby verify that the contents of paragraphs ____ to ____ are true and correct to my knowledge and records, and that nothing material has been concealed therefrom.

Verified at ____________ on this ____________ day of ____________, 20__.

COMPLAINANT

Documents normally filed with the complaint

  • Cheque/original instrument or legally admissible cheque record, as applicable.
  • Bank return memo/slip showing dishonour and reason.
  • Copy of statutory demand notice under Section 138.
  • Postal/courier receipt, tracking report, acknowledgment or other service evidence.
  • Reply to the notice, if received; material correspondence should not be suppressed.
  • Invoice, loan agreement, account statement, acknowledgment, purchase order or other material establishing the legally enforceable debt/liability.
  • Complainant's affidavit/evidence affidavit under Section 145, where required by local filing practice.
  • Authorization/board resolution/power of attorney where the complainant is a company, firm or represented entity.
  • Memo of parties, list of documents, list of witnesses, court-fee/process-fee documents and e-filing declarations as required by the competent court.

Interim compensation and compounding

Section 143A permits the trial court, in the situations specified by that provision, to order interim compensation not exceeding 20% of the cheque amount. The amount is ordinarily payable within 60 days from the order, extendable by up to 30 days on sufficient cause.

Section 147 makes offences under the Negotiable Instruments Act compoundable. Settlement therefore remains legally relevant even after institution of proceedings, subject to court orders and applicable law.

Official resources

Important drafting corrections

The older specimen automatically alleged dishonest intention and an offence under Section 420 IPC. That approach is outdated and potentially misleading. Cheque dishonour under Section 138 does not by itself establish cheating. The revised complaint therefore confines itself to the statutory ingredients of the Negotiable Instruments Act unless separate facts independently support an additional offence under the Bharatiya Nyaya Sanhita, 2023. The old CrPC Section 357 reference has also been replaced with the current BNSS compensation framework, subject to the special NI Act provisions.