Negotiable Instruments Act, 1881 (NI Act 1881) | Act Analysis

Key Concepts & Structural Highlights

Section 138: Dishonour of cheque for insufficiency of funds in bank account.
Mandatory 15-day statutory demand notice before filing court complaint.
Section 143A: Power of Court to order interim compensation up to 20% of cheque amount.

Used extensively by businesses, lenders, and individuals for recovering dishonoured cheque payments.

Educational Study Note:

Complaint must be filed within 1 month after expiry of 15-day notice period.

Official Reference: Reserve Bank of India (Banking Ombudsman)