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Cheque Dishonour Cases in Bangladesh: Legal Procedure Under Section 138

Cheque Dishonour Cases in Bangladesh: Legal Procedure Under Section 138

A cheque that is returned unpaid can create both financial and legal consequences for the drawer. In Bangladesh, cheque dishonour for insufficiency of funds or because the cheque exceeds the agreed arrangement with the bank may constitute a criminal offence under section 138 of the Negotiable Instruments Act, 1881.

However, a cheque does not automatically create a criminal case merely because it has been dishonoured. The law prescribes several mandatory conditions and time limits, including presentation of the cheque within the statutory period, issuance of a written demand notice within 30 days of receiving information of dishonour, allowing the drawer 30 days to make payment, and filing the complaint within one month after the cause of action arises.

The procedure is particularly time-sensitive. Missing one of the statutory deadlines can have serious consequences for the maintainability of a section 138 case.

This guide explains the cheque dishonour case procedure in Bangladesh, including legal notice, limitation, filing of the complaint, jurisdiction, trial, punishment, appeal and important legal considerations under the law currently applicable in 2026.

What Is a Cheque Dishonour Case?

A cheque dishonour case generally arises when a cheque drawn by a person on a bank account is returned unpaid for the reason specified in section 138, particularly:

insufficient funds in the account; or

the cheque amount exceeding the amount arranged to be paid from the account under the agreement with the bank.

Section 138 provides that, subject to its statutory conditions, the drawer may be deemed to have committed an offence.

The offence is governed principally by Chapter XVII of the Negotiable Instruments Act, 1881.

What Is the Punishment Under Section 138?

Under section 138, a person convicted of the offence may be punished with:

imprisonment for a term up to one year;

fine up to three times the amount of the cheque; or

both imprisonment and fine.

The punishment is imposed by the competent criminal Court after the statutory requirements and evidence have been considered.

A cheque dishonour case should therefore not be treated merely as an ordinary debt-recovery matter. Section 138 creates a specific statutory criminal remedy, while the law also preserves certain civil remedies.

When Does Cheque Dishonour Become an Offence?

A dishonoured cheque does not automatically satisfy section 138.

The statutory conditions must be fulfilled.

The Bangladesh Supreme Court has summarized the principal requirements as including:

issuance of the cheque;

presentation within the statutory period;

written demand notice within 30 days after receiving information of dishonour;

failure by the drawer to pay within 30 days after receiving the notice; and

filing of the complaint within one month after the cause of action arises.

Step 1: Issuance of the Cheque

The process begins with a cheque drawn by the drawer on a bank account.

The Negotiable Instruments Act defines a cheque as a bill of exchange drawn on a specified banker and payable on demand.

The cheque should be legally capable of being treated as a cheque under the Act.

The Court may examine the instrument itself and the circumstances surrounding its issuance where the validity or character of the instrument is disputed.

Step 2: Present the Cheque to the Bank

Under section 138(1)(a), the cheque must be presented to the bank within:

six months from the date on which it is drawn, or

the period of its validity,

whichever is earlier.

This is an important deadline.

The Supreme Court has identified timely presentation as one of the conditions that must be satisfied to establish an offence under section 138.

Example

Suppose a cheque is dated 1 January.

If its applicable validity period ends before six months, the shorter period controls.

The safest approach is therefore to present the cheque promptly rather than waiting until the end of the statutory period.

Step 3: Obtain the Bank's Dishonour Information

If the bank returns the cheque unpaid, the payee should preserve the relevant bank documents.

These may include:

dishonour slip;

return memo;

bank statement;

cheque itself; and

other documents showing presentation and dishonour.

The reason stated by the bank can be important because section 138 specifically addresses dishonour due to insufficient funds or exceeding the agreed arrangement with the bank.

Step 4: Send a Written Legal Notice Within 30 Days

This is one of the most important stages.

Under section 138(1)(b), the payee or holder in due course must make a written demand for payment by giving notice to the drawer within 30 days of receiving information from the bank that the cheque has been returned unpaid.

The notice should demand payment of the cheque amount.

Methods of Service

Section 138(1A) provides that the notice may be served:

by delivering it to the person;

by registered post with acknowledgement due to the person's usual or last known place of residence or business in Bangladesh; or

by publication in a daily Bangla national newspaper having wide circulation.

The complainant should preserve evidence of service.

Why Is the Legal Notice So Important?

The notice is not merely a formality.

The Bangladesh Supreme Court has held that simply presenting a cheque and sending a notice does not by itself complete the offence. The notice must be served and the drawer must fail to pay within the statutory 30-day period. Only then does the relevant cause of action arise.

Therefore, the sequence matters:

Dishonour → notice within 30 days → receipt of notice → 30-day payment period → cause of action → complaint within one month

Step 5: Give the Drawer 30 Days to Pay

After receipt of the statutory notice, the drawer has 30 days to pay the cheque amount.

Under section 138(1)(c), the criminal offence does not become actionable under the provision unless the drawer fails to make payment within those 30 days.

This means the payee should not normally rush to file the section 138 complaint immediately after sending the notice.

The statutory payment period must be allowed to expire.

Step 6: Cause of Action Arises

If the drawer fails to pay within the statutory 30-day period after receiving the notice, the cause of action arises.

The Bangladesh Supreme Court has specifically explained that the cause of action arises after expiry of the 30-day payment period and that the complaint must then be filed within the limitation period prescribed by section 141(b).

Step 7: File the Complaint Within One Month

Section 141(b) provides that a Court cannot take cognizance of a section 138 offence unless the written complaint is made within one month from the date on which the cause of action arises under section 138(c).

This is a critical deadline.

The limitation period is therefore not simply one month from the date the cheque bounced.

The calculation follows the statutory sequence:

Bank dishonour → notice within 30 days → 30 days for payment → cause of action → one month to file complaint.

Who Can File the Section 138 Complaint?

Section 141(a) provides that the complaint must be made in writing by:

the payee, or

the holder in due course of the cheque.

This is an important distinction because the Act specifically identifies who can initiate the prosecution.

Is a Police FIR Required?

A section 138 cheque dishonour case is initiated through a written complaint, not by treating it as an ordinary FIR-based police prosecution.

Section 141 expressly states that no Court shall take cognizance of an offence under section 138 except upon a written complaint by the payee or holder in due course.

Therefore, a person seeking to initiate a cheque dishonour prosecution should follow the complaint procedure applicable to section 138 rather than assuming that an FIR is the ordinary route.

Which Court Has Jurisdiction?

The jurisdictional provision was significantly changed by the Negotiable Instruments (Amendment) Act, 2026.

Under the current section 141(c):

where the face value of the cheque exceeds Tk. 5 lakh, the offence is triable by a Metropolitan Joint Sessions Judge or Joint Sessions Judge, as applicable;

other section 138 offences are triable by a Metropolitan Magistrate or Magistrate of the First Class.

This is an important 2026 development.

Older online articles may state that every section 138 case is tried by a Sessions Court. That description may no longer reflect the current statutory allocation following the 2026 amendment.

What Changed in 2026?

The Negotiable Instruments (Amendment) Act, 2026 (Act No. LXV of 2026) substituted section 141(c).

The current law therefore uses the Tk. 5 lakh threshold to determine the trial forum:

This change is particularly important for anyone relying on older information about cheque dishonour litigation in Bangladesh.

What Happens After Filing the Complaint?

Once the complaint is filed, the Magistrate or other competent Court considers it according to the applicable criminal procedure.

The Court may examine:

the complaint;

the cheque;

bank dishonour documents;

legal notice;

proof of service;

relevant correspondence;

other supporting documents; and

the complainant's evidence.

The accused may then appear before the Court pursuant to the Court's process.

What Evidence Is Important in a Cheque Dishonour Case?

A complainant should preserve a complete documentary trail.

Important evidence can include:

1. Original Cheque

The cheque is central to the proceeding.

2. Bank Return Memo

This can establish that the cheque was returned unpaid and the stated reason for dishonour.

3. Bank Records

Bank documents can establish presentation and dishonour.

4. Legal Notice

The written demand notice should clearly identify the cheque and demand payment.

5. Proof of Service

Evidence showing that the statutory notice was served can become critical.

6. Postal Documents

Where notice is sent by registered post, preserve the postal receipt and acknowledgement or other relevant postal evidence.

7. Newspaper Publication

Where the statutory newspaper publication method is used, the relevant publication should be preserved.

8. Transaction Documents

Depending on the circumstances, agreements, invoices, receipts, account statements or correspondence concerning the underlying transaction may become relevant.

The precise evidentiary requirements depend on the facts of the case.

Is the Underlying Debt Important?

The statutory language of section 138 has changed over time.

The words relating to a cheque issued “for the discharge, in whole or in part, of any debt or other liability” were omitted from section 138 in 2000.

However, the factual and legal circumstances surrounding issuance of the cheque can still be highly relevant to the parties' respective cases.

A drawer may raise legally relevant defences concerning the cheque, transaction, authority, payment, validity or other circumstances.

Therefore, the underlying transaction should not be ignored merely because the current text of section 138 no longer contains the earlier express wording.

What Are Common Defences in a Cheque Dishonour Case?

The appropriate defence depends on the evidence and circumstances.

Potential issues may include:

the statutory conditions were not fulfilled;

the cheque was not presented within the required period;

the statutory notice was not issued within 30 days;

the drawer did not receive legally sufficient notice;

the complaint was filed outside the statutory period;

the cheque is not legally attributable to the accused;

the cheque or signature is disputed;

the cheque was not issued in the circumstances alleged;

the amount had already been paid;

the complainant lacks the required status to file the complaint;

the statutory jurisdictional requirements were not satisfied; or

other legally recognized grounds arise from the facts.

These issues should be supported by evidence rather than merely asserted.

What If the Drawer Pays After Receiving the Notice?

If the drawer pays the cheque amount within the statutory 30-day period after receipt of the notice, the condition in section 138(c) concerning failure to pay is not satisfied.

Therefore, timely payment can prevent the statutory cause of action from arising in the ordinary case.

What If the Drawer Pays After the 30-Day Period?

If the drawer pays after the statutory period has expired, the legal consequences can be more complicated.

The complainant should obtain case-specific legal advice before assuming that late payment automatically extinguishes or resolves the criminal proceeding.

The timing of payment, whether a complaint has already been filed, and any order passed by the Court can all matter.

Can the Payee Also File a Civil Case?

Yes.

Section 138(3) expressly preserves the holder's right to establish a claim through a civil Court if all or part of the cheque value remains unrealized.

Therefore, the criminal remedy under section 138 does not necessarily eliminate the holder's civil remedies.

The appropriate civil proceeding and its limitation requirements should be considered separately.

What Happens to the Cheque Amount After a Fine Is Recovered?

Section 138(2) provides that where a fine is realized, an amount up to the face value of the cheque, to the extent covered by the fine realized, is to be paid to the holder.

Section 138(3) also preserves the holder's right to pursue a civil claim where the entire cheque value has not been recovered.

What Happens If the Accused Is Convicted?

If the accused is convicted under section 138, the Court may impose:

imprisonment up to one year;

fine up to three times the cheque amount; or

both.

The sentence depends on the circumstances and the Court's determination under the applicable law.

Is There a Special Rule for Appeal?

Yes.

Section 138A provides a special condition for appeals against a sentence under section 138.

An appeal against an order of sentence under section 138 cannot be filed unless an amount of not less than 50% of the dishonoured cheque amount is deposited before filing the appeal in the Court that awarded the sentence.

This is an important financial requirement for an accused who wishes to appeal against a section 138 sentence.

Cheque Dishonour by a Company

Where the drawer is a company, section 140 contains provisions concerning criminal liability.

Under section 140(1), where a company commits an offence under section 138, persons who were in charge of and responsible for the conduct of the company's business at the time of the offence may also be deemed guilty, subject to the statutory defence that the offence occurred without their knowledge or that they exercised due diligence to prevent it.

Section 140(2) also addresses liability of directors, managers, secretaries or other officers where the offence occurred with their consent or connivance, or was attributable to their neglect.

The liability of an individual connected with a company should therefore be examined according to the specific requirements of section 140 rather than assuming that every director is automatically liable.

Important Timeline for a Section 138 Case

The statutory timeline can be summarized as follows:

Simple Example

Suppose:

Cheque is presented and dishonoured on 1 March.

Payee receives information of dishonour on 2 March.

Legal notice should be issued within 30 days of 2 March.

Drawer receives the notice and has 30 days to make payment.

If payment is not made within that period, the cause of action arises.

The complaint must then be filed within one month from the date the cause of action arises.

The actual calculation should be made from the documented dates in the particular case.

Why Deadlines Matter So Much

Cheque dishonour litigation is unusually sensitive to statutory deadlines.

A complainant can have a genuine unpaid cheque but still face a procedural problem if:

the cheque was presented too late;

the demand notice was sent outside the 30-day period;

the notice was not served in accordance with the statutory requirements; or

the complaint was filed after the one-month period.

The Supreme Court has specifically emphasized compliance with the statutory sequence before criminal liability under section 138 can arise.

Common Mistakes by Complainants

Sending the Notice Late

The 30-day notice period begins from receipt of information from the bank regarding dishonour.

Filing the Complaint Immediately After Sending Notice

The drawer must be given the statutory 30-day period to pay after receipt of notice.

Ignoring Proof of Service

Simply preparing a legal notice is not enough. Evidence concerning service can be critical.

Missing the Complaint Limitation Period

The complaint must generally be filed within one month after the cause of action arises.

Relying on Outdated Information

The 2026 amendment changed the trial forum based on the Tk. 5 lakh threshold. Older articles may therefore provide incorrect information about which Court tries the case.

Common Mistakes by Accused Persons

Ignoring the Legal Notice

Receiving a notice does not mean that conviction is inevitable, but ignoring it can result in losing an opportunity to resolve the payment issue within the statutory period.

Assuming Every Dishonoured Cheque Automatically Creates Liability

The statutory conditions under section 138 must be satisfied.

Ignoring the Dates

The dates of:

cheque issuance;

presentation;

dishonour;

receipt of bank information;

notice;

receipt/service of notice;

expiry of the 30-day payment period; and

filing of complaint

can be crucial.

Assuming a Company Director Is Automatically Guilty

Section 140 contains specific statutory requirements concerning corporate liability.

Forgetting the 50% Appeal Deposit

A convicted person considering an appeal should take section 138A into account because the statute requires a deposit of at least 50% of the dishonoured cheque amount before filing the appeal.

Frequently Asked Questions

What section deals with cheque dishonour in Bangladesh?

Section 138 of the Negotiable Instruments Act, 1881 deals with dishonour of certain cheques for insufficiency of funds or where the cheque exceeds the agreed arrangement with the bank.

What is the punishment for cheque dishonour under section 138?

The punishment may extend to one year of imprisonment, a fine up to three times the cheque amount, or both.

How long is a cheque valid for filing a section 138 case?

The cheque must be presented within six months from the date it is drawn or within its validity period, whichever is earlier.

How long do I have to send a legal notice after a cheque bounces?

The payee or holder in due course must give written notice within 30 days of receiving information from the bank that the cheque has been returned unpaid.

How long does the drawer have to pay after receiving the notice?

The drawer has 30 days from receipt of the notice to make payment under section 138(c).

When can I file the cheque dishonour case?

If the drawer fails to pay within the statutory 30-day period after receiving the notice, the cause of action arises. The complaint must then generally be filed within one month from the date on which that cause of action arises.

Do I need to file an FIR for cheque dishonour?

No. Section 141 requires a written complaint by the payee or holder in due course for the Court to take cognizance of a section 138 offence.

Which Court handles cheque dishonour cases in Bangladesh?

Under the current section 141(c), where the cheque's face value exceeds Tk. 5 lakh, the case is triable by a Metropolitan Joint Sessions Judge or Joint Sessions Judge, as applicable. Other section 138 offences are triable by a Metropolitan Magistrate or Magistrate of the First Class.

Can I file a civil case for the cheque amount as well?

Section 138(3) preserves the holder's right to establish the claim through a civil Court if the cheque value remains wholly or partly unrealized.

Can a cheque dishonour case be filed against a company director?

Potentially, but section 140 contains specific requirements concerning persons who were in charge of and responsible for the conduct of the company's business and circumstances involving consent, connivance or neglect.

What happens if the drawer pays within 30 days of receiving the notice?

The statutory condition in section 138(c) concerning failure to make payment within 30 days would not be satisfied in the ordinary case.

What happens if the drawer pays after the 30-day period?

The legal consequences depend on the procedural stage and circumstances. Late payment should not automatically be assumed to resolve an already-arising criminal proceeding.

Is there a special condition for appealing a conviction?

Yes. Under section 138A, an appeal against a sentence under section 138 requires a deposit of at least 50% of the dishonoured cheque amount before the appeal is filed.

Key Takeaways

Section 138 of the Negotiable Instruments Act, 1881 is the principal provision governing qualifying cheque dishonour offences in Bangladesh.

The cheque must generally be presented within six months or its validity period, whichever is earlier.

The payee must issue written notice within 30 days after receiving information of dishonour from the bank.

The drawer gets 30 days after receiving the notice to make payment.

If payment is not made, the cause of action arises after expiry of the statutory payment period.

The section 138 complaint must generally be filed within one month from the date the cause of action arises.

The complaint must be made by the payee or holder in due course.

An ordinary FIR is not the statutory method for initiating a section 138 prosecution.

The notice can be served by personal delivery, registered post with acknowledgement due, or the newspaper publication method specified by section 138(1A).

Since the 2026 amendment, cheques exceeding Tk. 5 lakh are tried by a Metropolitan Joint Sessions Judge or Joint Sessions Judge, while other section 138 cases are triable by a Metropolitan Magistrate or Magistrate of the First Class.

The maximum punishment is one year imprisonment, fine up to three times the cheque amount, or both.

Section 138(3) preserves a civil remedy where the cheque value remains unrealized.

Section 138A requires a 50% deposit of the dishonoured cheque amount before an appeal against a section 138 sentence can be filed.

Corporate cheque dishonour cases require careful examination of section 140 before individual liability is determined.

Conclusion

A cheque dishonour case in Bangladesh under section 138 is governed by a strict statutory procedure. The case does not arise merely because a bank returns a cheque unpaid. The statutory requirements concerning presentation, notice, payment opportunity and limitation must be satisfied in the correct sequence.

For the payee, the most important practical point is to carefully track the statutory deadlines:

Present the cheque → obtain dishonour information → send notice within 30 days → allow 30 days for payment → calculate the cause of action → file the complaint within one month.

For the drawer, receiving a section 138 notice is an important legal event. The drawer should promptly examine the cheque, transaction, notice, dates and available legal defences rather than ignoring the notice.

The 2026 amendment to section 141(c) is also particularly important because the trial forum now depends on whether the cheque's face value exceeds Tk. 5 lakh.

Because a missed statutory deadline or defective notice can materially affect a section 138 proceeding, both the payee and drawer should have the cheque, bank documents, notice, proof of service and relevant dates reviewed by a qualified lawyer before taking significant legal action.

Authoritative Legal Sources

Negotiable Instruments Act, 1881 — Bangladesh Laws

Section 138 — Dishonour of Cheque

Section 141 — Cognizance and Trial of Section 138 Offences

Supreme Court of Bangladesh

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