A conviction under Section 138 for cheque dishonour can result in imprisonment of up to two years, a fine of up to twice the cheque amount, or both. However, since it is a compoundable offence, most cases are settled through payment before or during trial.
Key points
- The maximum punishment is imprisonment up to two years, or a fine up to twice the cheque amount, or both.
- Section 138 is a compoundable offence, so it can be settled if the drawer pays the amount.
- Courts often encourage settlement, and payment during proceedings can lead to the case being closed.
- The accused can present valid defences, such as the cheque not being for a legally enforceable debt.
- Interim compensation may be ordered to the complainant during the case.
Relevant law
Section 138 of the Negotiable Instruments Act, 1881 prescribes the punishment. Section 143A allows courts to order interim compensation, and Section 147 makes the offence compoundable. Summary trial procedures apply under Section 143.
What you can do
- If you are the accused, consider settling by paying the cheque amount to close the matter.
- If you have a genuine defence, gather documents showing the cheque was not for an enforceable debt.
- Attend all hearings before the Magistrate in Bhubaneswar to avoid adverse orders.
- Consult a cheque bounce lawyer in Bhubaneswar to plan your defence or settlement.
This is a system-generated summary based on general principles of Indian law, to help you understand your situation. It’s general legal information, not legal advice, and may not reflect the specifics of your case. For guidance on your matter, consult a verified advocate below.
