"138 NI Act case – Cheque issued closed account"

Question

"138 NI Act case – Cheque issued closed account"

15-Aug-2025 (In Criminal Law)

"Bank presented my security cheque in 2023 for a loan, but the account was closed in March 2021 as per RBI guidelines. Amount/date filled by bank. Can 138 NI Act still apply, or can case be dismissed?

Answers (5)

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Adv. Saddamhussain Adv. Saddamhussain

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Advocate Vanshika Pritmani LawRato · Accepted Answer · 2025-08-18T17:42:57+05:30

For an offence under Section 138 of the Negotiable Instruments Act, the following conditions must be satisfied: (i) cheque must be drawn on an account maintained by the drawer, (ii) it must be returned unpaid due to insufficiency of funds or similar reasons, and (iii) it must be issued in discharge of a legally enforceable debt. In your case, the account was already closed in March 2021, and the cheque was presented in 2023 with details allegedly filled in by the bank. Since the cheque was presented after account closure, there was no subsisting account, and hence the foundational requirement under Section 138 is not satisfied. Courts, including the Supreme Court, have held that if the account is closed before presentation, Section 138 liability may arise only if the cheque was issued when the account existed and dishonour occurs due to “account closed.” However, if the bank itself filled date/amount without authority, the defence of material alteration and lack of consent is available. You can contest maintainability at the threshold and seek dismissal of the complaint on grounds of absence of a legally enforceable debt and improper presentation.

Advocate Saubhagya Dubey LawRato · Accepted Answer · 2025-08-22T15:14:31+05:30

Answer #3

We would require you to disclose the entire facts of the matter before arriving at any conclusion. Please reach out with all the documents and necessary facts of the case so that an appropriate strategy can be formulated for the redressal of your grievances.

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Advocate Teena P Bajaj LawRato · Accepted Answer · 2025-08-27T11:32:06+05:30

Answer #4

It depends upon the communication taken place after the drawer of the cheque has closed the bank account of which the cheque was drawn. The law is always to be read in full and not in parts with the set of facts supported by the documentary and other evidences. Kindly gather them and consult.

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Advocate Sunny Jagyasi LawRato · Accepted Answer · 2025-08-29T15:24:36+05:30

Answer #5

138 ni act still apply and you could be charged with the amount as well as 12 months of jail you need to be appeared before the court 138 NI act still apply and you would be charged with the amount as well as 12 months of jail you need to be appeared before the court

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Adv. Sunny Jagyasi Adv. Sunny Jagyasi

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"138 NI Act case – Cheque issued closed account"

Adv. Saddamhussain Adv. Saddamhussain

Adv. Vanshika Pritmani Adv. Vanshika Pritmani

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Adv. Teena P Bajaj Adv. Teena P Bajaj

Adv. Sunny Jagyasi Adv. Sunny Jagyasi