Cheque Bounce Laws: Section 138 NI Act Procedure & Statutory Notice

Article at a Glance

Cheque dishonored due to insufficient funds constitutes offence under Sec 138 NI Act.
Mandatory 30-day statutory legal notice period from receipt of bank dishonor memo.
Payee must grant 15-day window to drawer to pay cheque amount before filing complaint.

Executive Overview

Criminal prosecution for dishonored cheques under Negotiable Instruments Act: bank memo, mandatory 30-day statutory notice, 15-day payment window, and magistrate complaint.

Key Takeaways & Practical Takeouts

Complaint must be filed within 30 days after expiry of 15-day notice period.
Offence carries penalty up to double the cheque amount or 2 years imprisonment.

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Mandatory Statutory Timelines
Filing Complaint in Magistrate Court

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