Overview
Section 138 creates criminal liability for dishonour of cheques for discharge of debt, subject to statutory conditions including notice and opportunity to pay.
Who does this apply to?
Anyone in India affected by cheque bounce law (section 138 ni act) — whether accused, complainant, or seeking preventive advice — should understand these basics before police or court steps proceed.
Meaning
Section 138 creates criminal liability for dishonour of cheques for discharge of debt, subject to statutory conditions including notice and opportunity to pay.
Punishment / consequences
Fine up to twice the cheque amount, imprisonment up to two years, or both. Civil recovery may proceed separately.
Timeline
Notice within 30 days of dishonour memo; 15-day payment window; complaint within one month thereafter. Missing deadlines can defeat complaint.
Procedure
Send statutory notice; wait 15 days; file complaint before magistrate with notice proof, bank memo, cheque return memo, and affidavit.
Required documents
- Dishonoured cheque
- Bank return memo
- Legal notice with dispatch proof
- Invoice or underlying agreement
- Ledger statements
Common mistakes
- Missing 30-day notice window
- Filing complaint in wrong jurisdiction
- Weak proof of legally enforceable debt
- Accepting partial payment without legal advice