Legal intelligence page · Statute

Section 138, Negotiable Instruments Act, 1881

Dishonour of cheque for insufficiency of funds. This page tracks every judgment, amendment and regulatory development the platform indexes under Section 138, updated automatically as new content is published.

Judgments indexed

1,284

Supreme Court

96

Last updated

Today

Overview

Section 138 makes the dishonour of a cheque for insufficiency of funds a criminal offence, subject to conditions on notice and the period of limitation. Litigation under the provision forms one of the largest categories of pending criminal matters in India, and appellate courts have repeatedly addressed the interaction between the statutory presumption under Section 139 and the accused's rebuttal burden.

Statutory text — extract

Where any cheque drawn by a person on an account maintained by him is returned by the bank unpaid, either because of insufficiency of funds or because it exceeds the amount arranged to be paid, such person shall be deemed to have committed an offence.

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Latest Supreme Court Judgments

High Court Developments

Bombay HC · JUL 2026

Territorial jurisdiction follows the payee's bank branch

Madras HC · JUN 2026

Compounding permitted at the appellate stage on terms

Explainers & Analysis