What is Dishonour of cheque for insufficiency, etc., of funds in the account? Dishonour of cheque for insufficiency, etc., of funds in the account are defined under Section 138 of Negotiable Instruments Act 1881
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless-
(a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;
(b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and
(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
Explanation: For the purposes of this section, "debt or other liability" means a legally enforceable debt or other liability.
Negotiable Instruments Act 1881
Section 121 - Estoppel against denying capacity of payee to indorse
Section 122 - Estoppel against denying signature or capacity of prior party
CHAPTER XIV OF CROSSED CHEQUES
Section 123 - Cheque crossed generally
Section 124 - Cheque crossed specially
Section 125 - Crossing after issue
Section 126 - Payment of cheque crossed generally
Section 127 - Payment of cheque crossed specially more than once
Section 128 - Payment in due course of crossed cheque
Section 129 - Payment of crossed cheque out of due course
Section 130 - Cheque bearing not negotiable
Section 131 - Non-liability of banker receiving payment of cheque
Section 131A - Application of Chapter to drafts
CHAPTER XV OF BILLS IN SETS
Section 133 - Holder of first acquired part entitled to all
CHAPTER XVI OF INTERNATIONAL LAW
Section 134 - Law governing liability of maker, acceptor or indorser of foreign instrument
Section 135 - Law of place of payment governs dishonour
Section 136 - Instrument made, etc., out of India, but in accordance with the law of India
Section 137 - Presumption as to Foreign Law
CHAPTER XVII OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS
Section 138 - Dishonour of cheque for insufficiency, etc., of funds in the account
Section 139 - Presumption in favour of holder
Section 140 - Defence which may not be allowed in any prosecution under section 138
Section 141 - Offences by companies
Section 142 - Cognizance of offences
Section 143 - Power of Court to try cases summarily
Section 144 - Mode of service of summons
Section 145 - Evidence on affidavit
Section 146 - Bank's slip prima facie evidence of certain facts