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Quick Answer
Section 138 NI Act creates the criminal-quasi-civil cheque-bounce offence. Elements: (i) cheque drawn on an account; (ii) for legally enforceable debt or liability; (iii) presented within validity (typically 3 months); (iv) dishonoured for insufficient funds, stop-payment, or other specified reasons; (v) demand notice within 30 days of dishonour; (vi) non-payment within 15 days of receipt of notice; (vii) complaint within 30 days of cause of action. Section 143 provides for summary trial, accelerating disposal.
Statutory reference
Section 138 NI Act 1881
Related practice areas
Penal provision in the Negotiable Instruments Act 1881 making dishonour of cheque drawn for legally enforceable debt or liability a punishable offence, with maximum imprisonment of 2 years or fine up to twice the cheque amount.
Section 138 NI Act is governed by Section 138 NI Act 1881. Section 138 NI Act creates the criminal-quasi-civil cheque-bounce offence. Elements: (i) cheque drawn on an account; (ii) for legally enforceable debt or liability; (iii) presented within validity (typically 3 months); (iv) dishonoured for insufficient funds, stop-payment, or other specified reasons; (v) demand notice within 30 days of dishonour; (vi) non-payment within 15 days of receipt of notice; (vii) complaint within 30 days of cause of action. Section 143 provides for summary trial, accelerating disposal.
Section 138 NI Act falls under Banking & Finance, Civil Law. NyaySevak matches you with a Bar-Council-verified advocate in the relevant practice area — the first consultation is free.