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 .