How to File a Cheque Bounce Case in Nepal?

As the number of cheque transactions has increased, so has the number of cheque-related crimes or dishonesty. A cheque bounce or dishonour of cheque occurs when there is no money or insufficient funds in an account and someone writes a cheque that the bank does not pay. Even if the cheque is bounced intentionally or unintentionally, it is still a crime in the eyes of the law. A law has been enacted to control and manage check-related crimes. The check must bounce three times. If you come across a cheque bounce case, you should be aware of the procedure for filing a complaint.

The Most Common Causes of a Cheque Bounce

There can be a variety of reasons for a cheque to be dishonored or a cheque to bounce. Let us take a look at a few of them:

Insufficient Balance in the Account

One of the most common causes of cheque bounces is a lack of funds in the drawer’s account. For example, if you receive a cheque from someone whose account balance is less than the amount stated on the cheque, the Bank will not initiate the transaction. It will now obstruct payment and dishonour the cheque.

A problem with the cheque’s date

The cheque’s date is extremely important. Any inaccuracy or illegibility in the date can result in a bounced cheque.

Signature Mismatch

Each drawer must ensure that his signature on the cheque matches the signature in the bank records, or he will face serious consequences.

Amount Difference in Numbers and Words

 If the payable amount in numbers and words differs, the bank will return the cheque. Furthermore, the same action is taken if the amount in the words section contains some numbers or vice versa.

Resetting or Scrawling on the Cheque

Is it necessary to file a FIR with the police?

If a cheque is issued when there is no money in the account, the cheque must be bounced three times, and the bounce letter must be attached to the written FIR application and filed as soon as possible at the nearest police station.

The Government Attorney launches an investigation

When a petition or complaint is filed with the nearest police station, the case is assigned to a government attorney. The government’s attorney will draft a charge sheet and present it to the Supreme Court.

The court then issues the procedure: After you file a cheque bounce case, the government attorney registers the case with the high court. Before granting bail, the high court hears the complainant’s arguments.

What is the Penalty?

A FIR for criminal charges may be filed under the Banking Offence and Punishment Act 2064 (2008). Section 15(1) of the Banking Offence and Punishment Act of 2064(2008) mentions a fine and attaches penalties with a fine and three months in prison.

A lawsuit must be filed with the court under civil law.
Under the Negotiable Instruments Act 2034 (1977), a cheque bounce case must be filed with the relevant district court under civil case within 5 years if a cheque is bounced.

A person who writes a cheque faces three months in prison or a NPR 3,000 fine, or both.

If the cheque is dishonoured when presented to the bank, she or he is obligated to pay the amount stated in the cheque as well as interest. The bank does not pay a cheque that is intentionally issued or provided to a person who knows there are no deposits in the account.

The Supreme Court provides important clarification and  establishes a principle in cases of cheque bounce. If the cheque bounce case is civil in nature, it is filed as a civil case.
Nepal Government Vs. Gita Stapit N.K. P Part 59 Number 11 Decision Number 9899.

The defendant Gita Stapit, a Jyoti Bikash Bank account holder, issued a cheque for an amount greater than what she had in the bank, and the cheque was dishonored. The facts are undeniably true.

According to Section 107(a) of the Negotiable Instruments Act of 2034 (1977), whoever issues such cheque is entitled to pay the amount stated in the cheque plus interest, and the individual who issues the cheque is penalized, and the individual who is the victim of such actions is entitled to payment plus interest from such individual.

Section 107(a) of the Negotiable Instruments Act 2034 (1977) governs the defendant’s action. No relief is provided to victims of banking-related offence under the Banking Offence and Punishment Act of 2064 (2008).

The Civil Code’s fraud provisions apply to similar types of cheque dishonor cases. If the defendant is punished for the same wrongful act in another case in the name of providing relief to the victim, the principle of double jeopardy is violated.

Please do not hesitate to contact us if you require assistance with a cheque bounce case.


  • Bikash siwakoti

    5 year from check issue, first bounce or 3rd bounce

    • Alpana Bhandari

      Please visit our office or you may contact us at +977-9849517735.

      Thank You!

  • Om Shah

    How long will it take all the process After the Submission the case in District Court?

    • Alpana Bhandari

      Thank you for your question. It should take around 5-6 months time period.

  • Mahesh Shrestha

    My check was issued with the condition that I would sell my house. Unfortunately with नेपालका economy, the prospective buyer reneged. The check consequently bounced. The drawer is going ahead with proceedings. What happens if I am able to sell the house after few months?

    • Alpana Bhandari

      Dear Mr. Shrestha:

      Thank you. Please visit our office for detailed information.

    • Sudip

      Hello, there is a cheque bounce case of 23 lakhs where case is filed through police. It was said that government of nepal will be the plaintiff and fight the case against the defendant. No lawyer was needed personally from the victim side as the government lawyer will fight the case feom the victim side. If the case, will the victim( plaintiff) get 23 lakhs+ 10% interest ?? Or, just the fine and attaches penalties with a fine and three months in prison ? I am not sure if it case is registered as per NI act offence 2034 or Banking offence and punishment 2064. Can you please answer the the amount victim can get when the case is won by government ?

      • Alpana Bhandari

        Thank you. Please connect with us at +977-9849517735 or visit our office.

  • Basnet

    It’s helpful to know legal provisions to whom it may concern. It’s related to banking law,specially dishonour of check.Clients and lawyer both can be benefitted from it.

    • Alpana Bhandari

      Thank you for your concern. Please visit us at our office for detailed information.


  • amroune

    I came across your site when I was searching and can say it’s a great resource.

  • amroune soumia

    bonne continuation…

    • Vishal

      Difference ammount between words and numbers what action should i take?

  • terki
  • terki
  • ferahtia_FS

    Merci pour ce partage

  • Ramu Sharma

    If you write a check when someone threatens you asking for money or check then how is that going to work? Is it still count check fraud?

  • Davis

    What are the best time to call you?

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