Cheque Bounce Case Law in Bangladesh 2026 | Legal Guide & Process

Cheque Bounce Case Law in Bangladesh

Have you ever issued a cheque that bounced due to insufficient funds? Or perhaps you’re holding a dishonoured cheque and wondering about your legal options? In Bangladesh, cheque bounce cases are among the most common commercial disputes, affecting thousands of individuals and businesses every year.

Understanding cheque bounce case law in Bangladesh is crucial whether you’re a business owner, creditor, or someone who has inadvertently issued a dishonoured cheque. The legal framework governing these cases provides both criminal and civil remedies, making it essential to know your rights and obligations.

At Elahi Legal, our experienced team has successfully handled hundreds of cheque dishonour cases across Bangladesh. With expertise in banking law, commercial litigation, and negotiable instruments, we provide comprehensive legal solutions for both complainants and accused persons.

This detailed guide covers everything you need to know about cheque bounce cases in Bangladesh, including legal provisions, procedures, recent case laws, and practical strategies for resolution.

What is a Cheque Bounce Case?

A cheque bounce case, also known as cheque dishonour case, occurs when a bank refuses to honor a cheque presented for payment. This typically happens due to:

• Insufficient funds in the account
• Account closure
• Signature mismatch
• Post-dated cheque presented early
• Payment stopped by the drawer
• Alteration in cheque details
• Frozen or dormant account

When a cheque is dishonoured, the holder has legal remedies under both criminal and civil law to recover the amount and seek compensation.

Legal Framework: Laws Governing Cheque Bounce in Bangladesh

Primary Legislation

1. Negotiable Instruments Act, 1881 (as amended in 2018)

The Negotiable Instruments Act is the primary law governing cheque transactions in Bangladesh. Section 138 specifically deals with dishonour of cheques for insufficient funds.

Key Provisions:

• Cheque dishonour is a criminal offense
• Punishment includes imprisonment up to 1 year
• Fine up to twice the cheque amount
• Both imprisonment and fine can be imposed together

2. The Artha Rin Adalat Ain, 2003 (Money Loan Court Act)

For commercial transactions and loan recovery, cheque bounce cases may also be filed under this special tribunal system.

Benefits:

• Faster disposal of cases
• Specialized judges with commercial law expertise
• Simplified procedures
• Limited appeal provisions for speedy justice

Constitutional Provisions

Article 42 of the Bangladesh Constitution guarantees the right to property, which includes the right to recover debts through proper legal channels.

Section 138 of Negotiable Instruments Act: Detailed Analysis

Section 138 is the most critical provision for cheque bounce cases. Let’s break it down:

When is Section 138 Applicable?

A case under Section 138 can be filed when:

• A cheque is issued for discharge of a debt or liability
• The cheque is presented within validity period (6 months from date)
• The cheque is returned unpaid by the bank
• The payee sends a legal notice within 30 days of receiving dishonour memo
• The drawer fails to pay within 15 days of notice receipt
• Complaint is filed within 30 days after the notice period expires

Important Timeline for Cheque Bounce Cases

Critical Note: Missing any of these deadlines can make your case legally invalid!

Punishment Under Section 138

If convicted, the drawer (person who issued the cheque) faces:

• Imprisonment: Up to 1 year
• Fine: Up to twice the cheque amount
• Or Both: Court can impose both simultaneously

The complainant can also seek compensation for legal expenses and loss of time.

Step-by-Step Procedure to File a Cheque Bounce Case

For the Payee (Complainant)

Step 1: Cheque Presentation and Dishonour

Present the cheque at your bank within its validity period (6 months from the date mentioned on cheque). The bank will:

• Process the cheque
• Contact the drawer’s bank
• Issue a cheque return memo if dishonoured

Documents to Collect:

• Original dishonoured cheque
• Cheque return memo from bank
• Bank statement showing presentation attempt

Step 2: Send Legal Notice (Within 30 Days)

Draft and send a legal demand notice to the drawer via registered post with acknowledgment due. The notice must:

• Refer to the dishonoured cheque details
• Demand payment of the cheque amount
• Give 15 days to make payment
• Be sent to the drawer’s address

Step 3: Wait for Response (15 Days)

After sending the notice:

• Wait for 15 days from the date drawer receives the notice
• Keep proof of postal delivery
• If drawer pays, case is resolved
• If no payment, proceed to filing

Step 4: File Complaint in Magistrate Court (Within 30 Days)

File a formal complaint in the appropriate Magistrate Court with jurisdiction. Required documents:

• Written complaint (on stamp paper)
• Original dishonoured cheque
• Cheque return memo
• Legal notice and postal receipt
• Proof of debt/liability
• Affidavit supporting the complaint

Jurisdiction: The case can be filed at:

• Place where cheque was issued
• Place where cheque was presented for payment
• Place where payee resides or carries business

Step 5: Court Summons and Trial

Once the complaint is accepted:

• Court issues summons to the drawer
• Drawer must appear before court
• Trial proceedings begin
• Both parties present evidence
• Court delivers judgment

Average Duration: 6 months to 2 years depending on court backlog and case complexity.

Defense Strategies for the Drawer (Accused)

If you’ve issued a cheque that bounced, you have legal defenses available:

Valid Legal Defenses

1. Cheque Was Not for Discharge of Debt

Argue that the cheque was issued as:

• Security deposit (not immediate payment)
• Gift or donation
• Advance payment later refunded
• Under coercion or undue influence

2. Technical Defects in Notice

Challenge the validity if:

• Notice was not sent within 30 days of dishonour
• Notice didn’t give 15 days payment time
• Wrong address was used
• Proof of delivery is insufficient

3. Complaint Filed Beyond Time Limit

If the complaint was filed after 30 days from the expiry of notice period, it’s legally barred.

4. Account Had Sufficient Funds

Provide bank statements proving adequate balance at the time of presentation.

5. Signature Forgery

If the signature on cheque is forged or unauthorized, file appropriate criminal complaint.

6. Cheque Was Stolen or Lost

Prove that the cheque was obtained illegally and you had stopped payment legitimately.

Practical Defense Strategies

Immediate Actions:

• Consult an experienced lawyer like Elahi Legal
• Gather all relevant documents
• Check for procedural irregularities in complaint
• Negotiate settlement if genuine debt exists
• File counter-claims if applicable

During Trial:

• Challenge complainant’s evidence
• Cross-examine complainant’s witnesses effectively
• Present documentary proof supporting your defense
• Maintain detailed records of all transactions

Landmark Case Laws on Cheque Bounce in Bangladesh

Important Supreme Court Judgments

1. Bangladesh Shipping Corporation vs. Bangladesh Biman (2004)

Key Ruling: A cheque given as security cannot be prosecuted under Section 138 unless it was meant for immediate payment of a debt.

Implication: Distinguishes between security cheques and payment cheques.

2. Khondker Delwar Hossain vs. The State (2010)

Key Ruling: The complainant must prove beyond reasonable doubt that:

• A legally enforceable debt existed
• Cheque was issued for that specific debt
• All procedural requirements were met

Implication: Places burden of proof on the complainant.

3. Abdul Karim vs. Aminul Haque (2015)

Key Ruling: If the drawer has closed the account after issuing the cheque with deliberate intention to dishonour it, this constitutes criminal breach of trust.

Implication: Strengthens protection for payees against deliberate defaulters.

4. Nurul Islam vs. State (2018)

Key Ruling: Post-dated cheques presented before the mentioned date and subsequently dishonoured cannot be prosecuted under Section 138.

Implication: Protects drawers from premature presentation.

Recent 2023-2025 Developments

Digital Payment Integration:

• Courts increasingly accepting electronic evidence
• SMS and email notices gaining validity
• Digital signatures on cheques being recognized

Faster Trial Procedures:

• Several Magistrate Courts implementing fast-track systems
• Video conferencing for hearing cheque bounce cases
• Online filing systems in Dhaka and Chittagong

Civil Remedies: Money Suit vs. Criminal Complaint

In addition to criminal prosecution under Section 138, the payee has civil remedies:

Filing a Money Suit

Advantages:

• Can claim full debt amount plus interest
• No strict time limits like criminal cases
• Can attach property for recovery
• Decree is executable nationwide

Disadvantages:

• Slower than criminal proceedings
• Requires more extensive evidence
• No imprisonment for drawer

When to Choose Civil Route:

• Amount is very large
• Criminal complaint time limit has expired
• Need comprehensive debt recovery
• Want to secure property attachment

Artha Rin Adalat (Money Loan Court)

For loan-related cheque dishonour:

• File under Artha Rin Adalat Ain, 2003
• Faster than regular civil courts
• Special provisions for evidence
• Limited appeal mechanisms

Jurisdiction: Only for financial institution loans or secured debts above certain threshold amounts.

Settlement and Compromise: Out-of-Court Resolution

Many cheque bounce cases are resolved through negotiation. Benefits include:

For Both Parties:

• Saves time and legal expenses
• Preserves business relationships
• Avoids criminal record
• Flexible payment terms possible

How to Negotiate Settlement

1. During Notice Period: Best time to settle is within 15 days after receiving legal notice.
2. After Filing, Before Trial: Parties can submit joint compromise petition to court.
3. During Trial: Court may refer to mediation or arbitration.

Settlement Agreement Format

A proper settlement should include:

• Acknowledgment of debt
• Agreed payment schedule
• Interest calculation (if any)
• Penalty clause for default
• Withdrawal of criminal complaint
• No-objection certificate (NOC) for court

Important: Get settlement agreement notarized and submit to court for recording.

Prevention: How to Avoid Cheque Bounce Situations

For Drawers (Who Issue Cheques)

1. Maintain Adequate Balance

• Always ensure sufficient funds before issuing cheques
• Keep buffer amount for bank charges
• Set up SMS/email alerts for low balance

2. Use Post-Dated Cheques Carefully

• Only give to trusted parties
• Mark clearly “Account Payee Only”
• Keep record of all issued cheques

3. Stop Payment When Necessary

• Immediately inform bank if cheque is lost
• File police complaint for stolen cheques
• Provide written stop payment instruction

4. Clear Account Closure

• Return all unused cheque books
• Inform all payees before closing account
• Redirect outstanding payments

For Payees (Who Receive Cheques)

1. Verify Cheque Details

• Check signature matches bank records
• Confirm date is not post-dated (unless agreed)
• Verify amount in words and figures match
• Ensure cheque is not torn or altered

2. Present Promptly

• Submit within 3 months ideally
• Don’t wait until last day of validity
• Keep copy of presented cheque

3. Maintain Documentation

• Keep proof of underlying transaction
• Preserve contracts, invoices, receipts
• Document all communications

4. Consider Bank Guarantees

• For large amounts, request bank guarantee
• Use demand drafts for assured payment
• Electronic fund transfers for instant settlement

Role of Banks in Cheque Bounce Cases

Bank’s Responsibilities

1. Proper Verification

• Authenticate drawer’s signature
• Verify sufficient funds
• Check for stop payment instructions

2. Timely Return Memo

• Issue cheque return slip promptly
• Clearly state reason for dishonour
• Provide to both parties

3. Maintain Records

• Keep cheque images for evidence
• Preserve account statements
• Cooperate with court summons

What Banks Cannot Do

• Refuse to issue return memo
• Delay processing beyond reasonable time
• Disclose account details without court order
• Accept irregular or altered cheques

Practical Tips for Handling Cheque Bounce Cases

For Complainants

DO’s:

✓ Act within strict timelines ✓ Send notice via registered post ✓ Keep all original documents safe ✓ Engage experienced lawyer like Elahi Legal ✓ Maintain complete transaction records ✓ Be prepared for cross-examination

DON’Ts:

✗ Delay sending legal notice ✗ Accept verbal promises without documentation ✗ File in wrong jurisdiction ✗ Negotiate without legal advice ✗ Lose original dishonoured cheque

For Accused Persons

DO’s:

✓ Respond to legal notice immediately ✓ Consult lawyer before appearing in court ✓ Gather all supporting documents ✓ Consider genuine settlement options ✓ Apply for bail if arrest likely ✓ Maintain court appearance regularly

DON’Ts:

✗ Ignore legal notice or court summons ✗ Make false statements ✗ Tamper with evidence ✗ Threaten or harass complainant ✗ Abscond from trial

Frequently Asked Questions (FAQs)

1. What is the punishment for cheque bounce in Bangladesh?

Under Section 138 of the Negotiable Instruments Act, punishment includes imprisonment up to 1 year and/or fine up to twice the cheque amount. Courts usually prefer fine over imprisonment for first-time offenders.

2. Can I go to jail for cheque bounce?

Yes, imprisonment is possible but depends on case circumstances. Courts consider factors like amount involved, intent, and whether it’s a repeat offense. However, bail is usually granted in cheque bounce cases.

3. How long does a cheque bounce case take in Bangladesh?

Typically 6 months to 2 years in Magistrate Courts. Cases in Artha Rin Adalat may be faster (3-9 months). Duration depends on court backlog and case complexity.

4. What happens if I miss the 30-day notice period?

Your case becomes legally invalid under Section 138. You’ll have to pursue civil remedies through money suit instead of criminal complaint.

5. Can I settle after filing the case?

Yes, settlement is possible at any stage. Both parties can submit joint petition to court for withdrawal. This is often the most practical solution.

6. What is the validity period of a cheque in Bangladesh?

6 months from the date mentioned on the cheque. After expiry, banks won’t honor it, and legal remedies may be limited.

7. Can I stop payment on a cheque after issuing it?

Yes, but only for valid reasons like:

• Cheque lost or stolen
• Signature forged
• Fraud suspected

Stopping payment without valid reason can strengthen complainant’s case.

8. Where should I file the cheque bounce case?

You can file in Magistrate Court at:

• Location where cheque was issued
• Location where bank branch is situated (where presented)
• Location where payee resides or conducts business

Choose jurisdiction strategically for convenience.

9. Is advocate necessary for cheque bounce case?

While not legally mandatory, it’s highly recommended. The procedures are technical, timelines are strict, and legal expertise significantly improves success chances. Elahi Legal offers specialized services for cheque bounce cases.

10. Can a company file cheque bounce case?

Yes, companies can file through authorized signatory. Required documents include company registration, board resolution, and signatory authorization.

How Elahi Legal Can Help

At Elahi Legal, we provide comprehensive legal services for cheque bounce cases:

Our Services

For Complainants:

• Legal notice drafting and dispatch
• Filing complaints in appropriate courts
• Complete trial representation
• Recovery execution support
• Civil suit filing for large amounts

For Accused:

• Defense strategy development
• Bail applications
• Trial defense representation
• Settlement negotiations
• Counter-claim preparation

For Both Parties:

• Pre-litigation consultation
• Alternative dispute resolution
• Mediation and arbitration
• Documentation review
• Risk assessment

Why Choose Elahi Legal?

✓ Experienced Team: Successfully handled cheque bounce cases ✓ High Success Rate: 85%+ favorable outcomes ✓ Strategic Approach: Customized solutions for each case ✓ Timely Action: Never miss critical deadlines ✓ Affordable Fees: Transparent pricing with no hidden costs ✓ Pan-Bangladesh Service: Representation in all district courts

Recent Trends and Future Outlook

Digitalization Impact

• E-Cheques: Bangladesh Bank introducing electronic cheque clearing system
• Digital Evidence: Courts accepting SMS, email, and WhatsApp messages
• Online Filing: Several courts now accept online complaint submission

Legislative Changes Expected

• Possible amendments to increase punishment
• Stricter provisions for repeat offenders
• Simplified procedures for small-value cheques
• Integration with digital payment systems

Statistics (2024-2025)

• Average cheque bounce cases filed monthly: 1,200+
• Conviction rate: Approximately 35-40%
• Settlement rate: Around 45-50%
• Average fine imposed: 150% of cheque amount

Conclusion: Protect Your Rights in Cheque Bounce Cases

Understanding cheque bounce case law in Bangladesh is essential for anyone involved in commercial transactions. Whether you’re seeking to recover a dishonoured cheque or defending against a complaint, knowing your legal rights and obligations makes all the difference.

Key Takeaways:

• Act swiftly – strict timelines apply
• Maintain proper documentation
• Follow legal procedures meticulously
• Consider settlement when beneficial
• Seek professional legal advice early

Cheque bounce cases can be stressful and time-consuming, but with the right legal support, you can achieve favorable outcomes. The law provides balanced protection for both parties while emphasizing the sanctity of financial commitments.

Need Expert Legal Help?

If you’re dealing with a cheque bounce situation, don’t navigate it alone. Contact Elahi Legal today for:

• Free initial consultation
• Case evaluation and strategy
• Professional representation
• Complete peace of mind

Call Now: +880-17175-54759 (Available 24/7) Office: Eastern Arzoo Suite, Bijoy Nagar, Dhaka

Remember, in cheque bounce cases, timing is everything. Don’t let deadlines pass – protect your rights today!