Yes, a cheque bounce case can be filed against a private limited company under Section 138 of the Negotiable Instruments Act, 1881. When a company issues a cheque that bounces due to insufficient funds or any other reason, legal action can be taken against both the company and its responsible officials. Who Can Be Held Liable? The Company Itself – Since the cheque was issued from the company's account. Directors & Authorized Signatories – Those in charge of financial decisions and cheque issuance. Section 141 of the NI Act states that if an offence is committed by a company, then every person responsible for the company’s conduct at the time of the offence is also liable. Steps to File a Cheque Bounce Case Against a Private Limited Company Demand Notice (Mandatory) A legal notice must be sent to the company and responsible directors within 30 days of receiving the cheque bounce memo. The notice must demand payment within 15 days from the company. Filing a Criminal Complaint If the company fails to pay within 15 days, a complaint can be filed under Section 138 NI Act in a magistrate court within 30 days after the 15-day period. Court Proceedings & Punishment If found guilty, the company and its responsible officials may face: Imprisonment up to 2 years, or Fine up to double the cheque amount, or both. Civil Suit for Recovery Along with the criminal case, the complainant can file a civil suit to recover the cheque amount with interest and damages. Defenses for the Company & Directors If a director proves that they were not responsible for the cheque issuance, they can avoid liability. If the cheque was issued without authorization, the responsible officer may be individually liable.