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

हिंदी में पढ़ें
June 24, 2019
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


4.8 - 22 reviews
S
LawRatoLawRatoLawRatoLawRatoLawRato

My cheque bounced 2 months back. What legal action can I take?

Swapnil on Nov 06, 2019
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I want to contact cheque bunce lawyer. Please share details.

Anu on Nov 20, 2019
K
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is it necessary to send a legal notice through lawyer in cheque bounce matters?

Kiran on Nov 24, 2019
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can I file a cheque bounce case for cheque received as security?

Abhishek on Oct 25, 2019
R
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Whether criminal and civil case can be filed simultaneously for cheque bounce?

Rekha on Nov 07, 2019
S
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Very nice article.

Sourav on Nov 18, 2019
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it’s a very nice legal article

Niti on Nov 24, 2019
M
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Understood the subject with clarity.

Mamta on Dec 04, 2019
P
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Gave me a very clear idea of the subject.

Prabhu on Nov 12, 2019
J
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learned all the basics about the legal issue. Good article. Keep it up.

Jagdish on Dec 03, 2019
R
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Very good article

Rajendra on Dec 04, 2019
S
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thanks for the advice

Shilpi on Nov 30, 2019
G
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very good article. Can you tell me more about the law?

Gautam on Nov 27, 2019
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A well written article.

Navneet on Nov 22, 2019
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Nicely written article. Very comprehensive.

Naveen on Nov 06, 2019
M
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The writer has explained the law perfectly.

Manoj on Nov 21, 2019
M
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Good work with the article.

Meena on Nov 21, 2019
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informative

Mayank on Oct 21, 2019
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solved my queries.

Suman on Dec 04, 2019
G
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nice article

Gagan on Oct 26, 2019
S
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great content. Thanks.

Savita on Nov 25, 2019
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needed legal advice…who to call

Abhi on Oct 24, 2019

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