Legal Framework and Statutory Mandate
Statutory Requirements for Prosecution
| Requirement | Statutory Reference | Time Limit |
|---|---|---|
| Presentation to Bank | Section 138(a) | Within 6 months (Validity) |
| Legal Notice Issuance | Section 138(b) | Within 30 days of Dishonour |
| Payment Grace Period | Section 138(c) | 15 days from Notice Receipt |
| Filing of Complaint | Section 138 Proviso | Within 30 days after Grace Period |
Procedural Roadmap for Recovery
Key Procedural Steps
- Dishonour Memo: Obtain the 'Cheque Return Memo' from the bank stating the reason (usually 'Insufficient Funds').
- Statutory Notice: Serve a notice in writing to the drawer via registered post with A/D, demanding payment within 15 days as per Section 138(b).
- Jurisdiction: The complaint must be filed in the Court of the Judicial Magistrate or Metropolitan Magistrate having territorial jurisdiction over the bank where the cheque was presented.
- Cognizance: The Magistrate takes cognizance under Section 190 of the CrPC.
- Trial and Punishment: Upon conviction, the drawer may be punished with imprisonment for a term which may extend to one year, or with a fine which may extend to thrice the amount of the cheque, or both.
Consult Barrister Liton Asaduzzaman Sarkar
Ensure your recovery process adheres to strict limitation periods. Contact our commercial litigation team for strategic advice.
Schedule Scoping2026 Statutory Update: Negotiable Instruments (Amendment) Act, 2026 (Act No. 65 of 2026)
Following the enactment of the Negotiable Instruments (Amendment) Act, 2026, major statutory amendments have taken effect under Section 141(c) of the NI Act 1881 regarding trial court jurisdiction:
- Cheques Exceeding BDT 500,000 (Tk. 5 Lakh): Exclusive trial jurisdiction is now assigned directly to the Court of Joint Sessions Judge or Metropolitan Joint Sessions Judge, streamlining summary disposal and high-value debt recovery.
- Cheques of BDT 500,000 or Less: Triable by the Court of Metropolitan Magistrate or Judicial Magistrate of the First Class.
- Mandatory Pre-Trial Settlement Verification: Courts are now statutorily mandated to explore mediation/conciliation at the initial appearance stage before framing formal charges.
Controlling Authority: Act No. 65 of 2026; Gazette Extra 10/04/2026; Section 141(c) Negotiable Instruments Act, 1881.
Frequently Asked Questions
Can a company be prosecuted for cheque dishonour?
Yes. Under Section 141 of the Negotiable Instruments Act 1881, if the person committing the offense is a company, every person who at the time the offense was committed was in charge of and responsible to the company shall be deemed guilty.
What is the mandatory deposit for filing an appeal?
According to Section 138(1A) of the Negotiable Instruments Act 1881, no appeal against an order of fine shall be entertained unless at least 50% of the amount of the fine is deposited in the court.
Is a 'Security Cheque' enforceable under Section 138?
Yes, the Appellate Division of the Supreme Court of Bangladesh has held that Section 138 does not distinguish between a cheque issued for repayment of a debt and a security cheque, provided the debt is legally enforceable.
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