Section 138 of Negotiable Instruments Act relates to dishonour of cheque i.e. when is a cheque returned as unpaid on being presented to the banker. Section 138 of the Negotiable Instrument Act, 1881 can be divided into the following elements-

  • Cheque is drawn by a person on account maintained by him;

  • Such cheque is issued for discharge of a legally enforceable debt or liability;

  • Such discharge can be in whole or in part;

  • To any other person to whom such payment is to be made;

  • Such cheque is returned by the bank as unpaid because of any reasons aforementioned;

  • Such person or drawer is deemed to have committed the offence of “dishonour of cheque”.

If you receive a notice under Section 138 of Negotiable Instruments Act, do not panic and hire an expert cheque bounce lawyer online .

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