When a cheque is dishonored, the most common question we hear is, “This person has cheated me. Can I file a police complaint for cheating under Section 420?”
It’s a valid and important question. A bounced cheque feels like a breach of trust, which is the very essence of cheating. The answer, under Indian law, is: Yes, you can file both cases, but only if the specific ingredients for each offense are present.
The two laws are not mutually exclusive. A single transaction of a bounced cheque can give rise to two separate legal actions. At lawyerinfaridabad.com, our team, led by Advocate Satish Chauhan, has deep experience in these matters. Let’s break down the critical differences.
The Key Difference: Intent
The entire legal debate boils down to one word: Intent.
- Section 138 (Cheque Bounce) is a “strict liability” offense. The court doesn’t need to check why the cheque bounced. It only needs to see if the cheque was for a legal debt, it bounced, you sent a legal notice, and you weren’t paid. The drawer’s intention at the time of issuing the cheque doesn’t matter.
- Section 420 (Cheating) is entirely about intention. To prove cheating, you must prove that the person had a dishonest intention from the very beginning (i.e., at the moment they gave you the cheque). You have to show they knew the cheque would bounce and intended to deceive you into delivering property or money.
Comparing the Two Offenses
Understanding their differences is key to seeing why both cases can be filed.
| Feature | Section 138 (Cheque Bounce) | Section 420 (Cheating – IPC) |
| Primary Law | Negotiable Instruments Act, 1881 | Indian Penal Code, 1860 |
| Core Ingredient | Cheque bounced for a legally enforceable debt; failure to pay after notice. | Dishonest intent at the time of inducement (at the start). |
| Nature of Offense | Quasi-Criminal (a civil wrong with criminal penalties). | Purely Criminal. |
| Who Files? | A private complaint must be filed by you (the payee) before a Magistrate. | A police complaint (FIR) can be filed, and the State (police) will prosecute. |
| Main Goal | Primarily compensatory—to recover the cheque amount (with a fine up to double the amount). | Primarily punitive—to punish the accused with imprisonment (up to 7 years) for the act of cheating. |
When Can You File Both?
The Supreme Court of India has clarified that the two offenses are distinct. Filing both is not “double jeopardy” (being tried for the same crime twice) because the ingredients of the crimes are different.
You can file both a Section 138 complaint and a Section 420 FIR if you can show:
- For Section 138: The person gave you a cheque for a valid debt (e.g., goods supplied, a loan).
- For Section 420: You can also provide evidence that the person never intended to pay you from the start.
Example:
A person buys 5 lakh worth of materials from you. They give you a post-dated cheque. You later find out that they closed their bank account before they even gave you the cheque.
- This is a clear Section 138 case (cheque bounced).
- It is also a strong Section 420 case because closing the account is powerful evidence of a pre-planned, dishonest intention to deceive you. They knew it was impossible for the cheque to be honored.
When Can You NOT File a 420 Case?
A simple cheque bounce is not always cheating.
If a person with a good business history gives you a cheque, but a major payment they were expecting gets delayed, causing their cheque to you to bounce, this is not cheating. They had the intention to pay, but circumstances changed. This is a classic Section 138 case, but not Section 420.
A Cheque bounce case lawyer faridabad can analyze your evidence (like WhatsApp chats, emails, or the timing of bank account closures) to determine if you have a strong case for cheating.
Which Is Better?
Many clients ask a Cheque Bounce advocate faridabad this question, hoping a police FIR will be faster.
- Section 138 is often more direct for money recovery.
- Section 420 is more serious, involves the police, and can lead to immediate arrest, putting significant pressure on the accused.
The best strategy often involves using both, but it must be based on the facts. Filing a false 420 case can backfire. Consulting an experienced lawyer, like Advocate Satish Chauhan, to draft your complaint and legal notice correctly is the most critical step to ensure your rights are protected and you choose the strongest path to justice.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal advice. The information provided is not intended to be used in court or for any legal proceedings. For advice specific to your case, please contact a qualified advocate.
