Banking & Cheques
Section 138 — Negotiable Instruments Act, 1881
When does a dishonoured cheque become a criminal offence — and what window do you have to act?
- 1Cheque must be drawn for legally enforceable debt or liability.
- 2Bank returns it unpaid for insufficient funds (or stop-payment without cause).
- 3Payee must send legal notice within 30 days of the bank memo.
- 4Drawer has 15 days to pay; on default, complaint must be filed within 30 days.