Section 138 Negotiable Instruments Act 1881 (NI Act): Cheque Bounce or Dishonor of Cheque

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January 06, 2020
By Advocate Chikirsha Mohanty



In case of a Dishonour of Cheque, one can send a legal notice and follow the legal procedure in order get the cheque honoured. For this you will need the help of a cheque bounce lawyer.

Section 138 of the Negotiable Instruments Act, 1881 deals with dishonour of Cheque. The same has been produced below.

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Dishonour of cheque for insufficiency, etc., of funds in the account. —


Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of this Act, be punished with imprisonment for [a term which may be extended to two years], or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless—

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(a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;
(b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, [within thirty days] of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and
(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

Explanation.— For the purposes of this section, “debt or other liability” means a legally enforceable debt or other liability.]



 

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User Reviews


4.5 - 22 reviews
R
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Whether criminal and civil case can be filed simultaneously for cheque bounce?

Rakesh on Jul 19, 2020
A
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I want to contact cheque bunce lawyer. Please share details.

Akansha on Jul 21, 2020
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My cheque bounced 2 months back. What legal action can I take?

Usha on Jul 23, 2020
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is it necessary to send a legal notice through lawyer in cheque bounce matters?

Venkatesh on Jul 21, 2020
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can I file a cheque bounce case for cheque received as security?

Mansi on Jun 25, 2020
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very helpful

Anupam on Jul 22, 2020
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thank you for the article

Varsha on Jul 23, 2020
M
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great advice. Thanks

Mamta on Jun 25, 2020
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needed legal help…whom shall I contact?

Simran on Jul 12, 2020
P
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very well written

Prachi on Jun 26, 2020
S
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Thanks for the detailed article.

Supriya on Jul 17, 2020
G
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thanks for the info. How can we contact a lawyer?

Gaurav on Jun 22, 2020
P
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Answered all my legal queries.

Piyush on Jul 11, 2020
L
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nicely written. Great work

Laxman on Jul 03, 2020
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how to contact a lawyer?

Santhosh on Jul 06, 2020
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nice article. Thanks for the information

Chirag on Jul 16, 2020
S
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Gave a clear understanding about my legal issue.

Swathi on Jul 07, 2020
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nice article. Good legal advice

Anonymous on Jun 20, 2020
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very well written

Aniket on Jun 18, 2020
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how to contact a lawyer from your website

Vikrant on Jun 16, 2020
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thanks for the information

Vipul on Jul 26, 2020
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needed some more information on the subject.

Ajith on Jul 18, 2020

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