Cheque Bounce 'Refer to Drawer' — Accused Gets Favourable Judgment
What you need to know
A 'Refer to Drawer' (RTD) cheque return memo is legally treated as a dishonoured cheque under Section 138 of the Negotiable Instruments Act, 1881, making the drawer criminally liable. However, courts do acquit accused persons if proper legal procedure was not followed — for instance, if the mandatory 15-day demand notice was not sent correctly, the complaint was filed late, or the cheque was not presented within its validity period. If the accused has received a favourable judgment at the trial court level, the payee (complainant) still has the right to appeal before a Sessions Court or High Court within the prescribed limitation period. Understanding the exact ground of acquittal is critical before deciding your next legal step.
Your rights
As complainant, you have the right to appeal an acquittal order before the Sessions Court or High Court under Section 378 CrPC
You can file a civil recovery suit for the cheque amount independently, even if the criminal case fails
If the demand notice was returned unserved, courts may still hold service valid if proper address was used
You are entitled to compensation up to twice the cheque amount under Section 357 CrPC if conviction is secured on appeal
What you should do now
Action firstObtain and study the acquittal judgment
- Collect the certified copy of the judgment from the trial court immediately
- Identify the exact legal ground on which the accused was acquitted (notice defect, limitation, etc.)
Consult a criminal lawyer about appeal viability
- A complainant must obtain leave (permission) from the Sessions Court or High Court to appeal an acquittal under Section 378(4) CrPC
- Limitation for filing such appeal is typically 90 days from the date of acquittal order — act quickly
- Assess whether the acquittal was on merit or on a procedural/technical ground — the latter is more appealable
File an appeal or pursue civil recovery in parallel
- If the acquittal ground is strong, file a civil suit for recovery of cheque amount with interest in a civil court
- A civil suit is independent of the criminal case and is not barred by acquittal under Section 138
Send a fresh legal notice if a new cheque was issued and dishonoured
- If a replacement cheque was given and also bounced, that is a fresh cause of action — issue a new 30-day demand notice via registered post
- File a fresh Section 138 complaint within 30 days of expiry of the notice period
Acts applicable
Negotiable Instruments Act, 1881
centralSection 138 — dishonour of cheque for insufficiency of funds
Negotiable Instruments Act, 1881
centralSection 142 — cognizance of offence, limitation for filing complaint
Code of Criminal Procedure, 1973
centralSection 378 — appeal against acquittal by complainant