Featured · Legal overview
Understanding NI Act Prosecutions
A concise, balanced overview of the statutory framework for cheque-dishonour matters under Section 138 of the Negotiable Instruments Act, 1881.
This page is a general legal overview. It does not reproduce or attribute an original publication to Advocate Sunil Kumar Upadhyay. The Featured listing and the Insights listing show different dates for this title; this page does not resolve that discrepancy.
The statutory framework
Section 138 addresses a cheque drawn on an account maintained by its drawer for payment of a legally enforceable debt or other liability when the cheque is returned unpaid for insufficient funds or because it exceeds the arrangement made with the bank. The section also sets conditions that must be met for the offence to apply, including requirements relating to presentment, written demand following notice of dishonour, and non-payment within the prescribed period.
Section 139 provides a rebuttable presumption in favour of the holder of the cheque: unless the contrary is proved, the holder is presumed to have received it toward discharge, in whole or in part, of a debt or liability. The presumption is not conclusive; it must be considered with the evidence and circumstances of the particular case.
Why the facts matter
A Section 138 matter turns on whether the statutory ingredients are established and on how the evidence bears on the presumption under Section 139. The same broad legal framework can apply to very different factual records. A general summary cannot determine liability or predict the result of an individual dispute.
Scope of this overview
This page is limited to the central statutory framework in Sections 138 and 139. It does not attempt to set out a filing checklist, deadlines, forum-specific procedure, or an outcome for any particular cheque or proceeding. Those questions depend on the applicable law and the facts of the matter.
