What Section 138 covers
Section 138 of the Negotiable Instruments Act applies when a cheque is dishonoured and statutory requirements are met. The case depends on the cheque, the reason for return, the legal demand notice and filing within limitation.
Key steps
- Preserve the cheque and bank return memo.
- Send a legally compliant demand notice within the required timeline.
- Track service proof and payment response.
- File the complaint with supporting documents if payment is not made.
- Prepare evidence for trial or settlement discussions.
For accused persons
Defence may involve the nature of liability, misuse of cheque, limitation, defective notice, payment history or evidentiary gaps. Early review is important because missed dates can narrow options.
This article is general information, not legal advice. For a specific cheque bounce matter, consult an advocate with the documents.
