Cheque Bounce — NI Act Section 138/142

Dishonour of a cheque for insufficiency of funds is an offence under Section 138 of the Negotiable Instruments Act, 1881, punishable with imprisonment up to two years or a fine up to twice the cheque amount, or both. The Negotiable Instruments Act is a special statute that was not replaced by the new criminal codes, so its sections continue unchanged — though the trial procedure draws on the BNSS as the general procedural law. The statutory timeline is strict and non-extendable: a demand notice must be issued within 30 days of receiving the bank’s return memo, and the complaint must be filed within 30 days of the drawer’s failure to pay within 15 days of the notice. Jurisdiction lies, under Section 142, where the payee’s bank branch is situated. The trial is summary in nature under Section 143, with presumptions in the complainant’s favour under Sections 118 and 139. We handle the entire cycle — statutory notice, complaint, summary trial, interim compensation, appeals with the mandatory deposit under Section 148, and compounding under Section 147 in line with the Damodar S. Prabhu guidelines.