civil · legal education

Cheque Dishonour Basics

Understand why cheque-bounce matters are document-heavy and time-sensitive.

Negotiable Instruments Act, 1881 · Section 138Reviewed · 19 Sep 2026General information

What this means

Section 138 of the Negotiable Instruments Act deals with dishonour of certain cheques for insufficiency of funds or when the amount exceeds the arrangement with the bank, subject to the statutory conditions and procedure. These matters are document-heavy and time-sensitive.

What to keep ready

  • Keep the original cheque and return memo safely.
  • Preserve proof of the underlying transaction.
  • Do not delay in obtaining legal advice after dishonour.
Professional assistance

How this connects with the practice

Related practice support can include notice preparation or response, settlement discussion and proceedings connected with cheque dishonour.

Official reference

India Code · Negotiable Instruments Act, 1881 ↗

This guide is for general legal education only and is not legal advice. The correct procedure, remedy, limitation period and forum depend on the facts, documents and current law applicable to a specific matter.
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