Can police file FIR in a cheque bounce?

Answer

A:

In cheque bounce cases, the role of police is very limited. Let me explain clearly:

1. Nature of Cheque Bounce Offence

• Dishonour of cheque is covered under Section 138 of the Negotiable Instruments Act, 1881 (NI Act).

• It is a special criminal offence, but it is non-cognizable (i.e., police cannot investigate or register FIR directly).

• It is also bailable and compoundable (settlement is allowed).

2. Can Police File an FIR?

• No, police cannot register an FIR for cheque bounce under Section 138 NI Act.

• Because FIRs are filed only for cognizable offences (like theft, cheating, assault). Cheque bounce is non-cognizable.

• The remedy is through the Magistrate Court, not the police station.

3. Correct Legal Procedure

• The payee (person to whom money is owed) must send a legal demand notice within 30 days of dishonour.

• If the drawer fails to pay within 15 days, the payee can file a criminal complaint before the Magistrate under Section 138.

• The Magistrate then issues summons/warrants if needed.

4. Exception – When FIR is Possible

• If cheque bounce is accompanied by fraud, cheating, or criminal breach of trust (Sections 420, 406 IPC), then the police can register FIR.

  • Example: If someone issues a cheque knowing the account is closed, intending to cheat.

  • In that case, FIR can be filed under IPC + NI Act combined.

• Police cannot file FIR for simple cheque bounce.

• The remedy is by filing a complaint before Magistrate under Section 138 NI Act.

• FIR is possible only if fraud or cheating is proved in addition to dishonour.