Statutory Legal Notice
Timely drafting and dispatch of the Section 138 demand notice within the statutory period.
A dishonoured cheque is not merely a broken promise — it is a punishable offence. Advocate Subhash Ahlawat pursues and defends cheque-bounce cases under Section 138 of the Negotiable Instruments Act across Faridabad and the Delhi NCR, with a focus on swift, favourable recovery.
Subhash Ahlawat
Advocate · Counsel
When a cheque is dishonoured, the law offers a powerful remedy — but it is hedged with strict timelines. Miss the window for the statutory notice or the complaint, and a strong claim can be lost. Acting quickly and correctly is everything.
The practice represents both complainants seeking recovery and accused persons facing prosecution under Section 138 of the Negotiable Instruments Act. This includes the statutory legal notice, filing and conduct of the complaint, defence against false or time-barred cases, and the liability of company directors and signatories.
For those owed money, the aim is the swiftest favourable settlement or decree; for those wrongly accused, a robust and well-prepared defence. Either way, you receive clear advice on the timelines, the strategy and the realistic outcome.
How a Section 138 case proceeds: the law fixes a strict clock. When a cheque is dishonoured, the bank issues a return memo. The payee must send a written demand notice within thirty days of receiving that memo; the drawer then has fifteen days to pay. If payment does not come, the complaint must be filed within one month thereafter before the Magistrate. Miss a step in that chain and the complaint fails regardless of the merits — which is why the chambers treats the notice stage with the same care as the trial.
The offence carries imprisonment of up to two years or a fine of up to twice the cheque amount, or both — and crucially for complainants, courts may order interim compensation of up to twenty per cent of the cheque amount while the trial is pending, and appellate courts ordinarily require a convicted drawer to deposit a substantial portion of the compensation before an appeal is heard. The law has steadily tilted toward making the drawer pay sooner rather than later.
Jurisdiction follows the payee’s bank: the complaint is filed where the cheque was presented for collection, which for Faridabad businesses ordinarily means the Faridabad courts. The chambers conducts these matters on both sides — prosecuting complaints for payees and defending drawers, where defences such as the absence of a legally enforceable debt or a materially altered instrument are real and regularly succeed when properly raised.
On timelines: Section 138 cases are tried summarily and the statute intends speed, though contested matters in practice run one to three years. Interim compensation, the threat of conviction and structured settlement — including compounding, which the offence permits at any stage — mean a substantial share of matters resolve well before judgment. The chambers presses whichever lever serves the client best.
On fees: complaints are typically engaged at a fixed fee through trial, with the demand notice available as a standalone service for businesses that want the statutory step done correctly and fast. Defence engagements are agreed stage-wise. For enterprises with recurring receivables problems, a retainer covering notices and proceedings is available.
Timely drafting and dispatch of the Section 138 demand notice within the statutory period.
Filing and conduct of the cheque-bounce complaint before the competent Magistrate.
Pursuit of dishonoured amounts to a swift settlement or favourable order, with interest and costs.
Robust defence in false, time-barred or technically defective Section 138 prosecutions.
Advice and representation on the liability of companies, directors and authorised signatories.
Parallel civil recovery suits where a money claim extends beyond the cheque itself.
Get a clear, honest assessment of your matter and the options available to you.
Talk to an advocate →Sharp courtroom advocacy backed by deep knowledge across multiple branches of law.
Two decades of practice spanning district courts, the High Court and the Supreme Court.
Responsive counsel who keeps you informed and reachable when it matters most.
A clear, upfront fee structure with no hidden costs or unwelcome surprises.
No two matters are alike, but every client deserves the same clarity — from the first conversation to the final order, and beyond.
Begin with a Consultation →We begin with a confidential, unhurried conversation to understand your matter, your goals and your concerns and to read the papers carefully.
You receive an honest assessment in plain language the merits, the risks, the likely timeline and the cost. No jargon, no false assurance.
Your matter is prepared meticulously and argued personally, with you kept informed at every hearing and every turn.
We pursue the most efficient path by settlement where wise, by trial where necessary and remain available long after the file is closed.
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Speak with the chambers+91 9953482307The law is strict on timelines. A statutory demand notice must be sent within thirty days of the return memo, and the complaint filed within the prescribed period thereafter. Call the chambers promptly so no deadline is missed.
An offence under Section 138 can attract imprisonment of up to two years, a fine of up to twice the cheque amount, or both — alongside the recovery of the sum due.
Yes, and such cases do arise. A well-prepared defence — challenging the debt, the notice or the technical requirements — can succeed. We defend false and defective complaints rigorously.
Directors and authorised signatories can be made liable in appropriate circumstances, subject to the statutory requirements. We advise on both prosecution and defence of such claims.
Many matters settle before trial once proceedings begin. We pursue the swiftest favourable route — settlement where wise, trial where necessary.
Not by itself. The question is whether a legally enforceable debt or liability existed when the cheque was presented. A security cheque encashed against a crystallised liability can still found a valid complaint — the facts and the paper trail decide, and we build that trail into the complaint from the start.
The court may order interim compensation of up to twenty per cent of the cheque amount during the trial, and conviction brings fine or compensation that can reach twice the cheque amount. Settlement under the shadow of these provisions recovers money faster than judgment in many matters.
Absence of a legally enforceable debt, payment already made, material alteration of the cheque, defects in the statutory notice or its service, and rebuttal of the statutory presumptions on the evidence. The defence must be built early — the presumptions favour the complainant, and a drifting defence loses.
Yes. The offence is compoundable, and courts encourage settlement at every stage — including through Lok Adalats. A negotiated payment with the complaint withdrawn is often the most sensible exit for both sides, and we structure such settlements so they actually conclude the dispute.
Tell us a little about your cheque bounce matter and we will respond promptly. For urgent matters, call either chamber directly.
Faridabad Chamber
Chamber No. 274, Lawyer's Chambers Building, District Court, Faridabad 121004
10:00 AM – 2:00 PM
Ballabgarh Office
175/B, Bhatia Colony, Ballabgarh 121004
2:00 PM – 9:00 PM