Cheque Dishonor Case in Bangladesh
Dishonor of a cheque in Bangladesh is a criminal offence under the Negotiable Instruments Act, 1881, specifically governed by Section 138. It provides a statutory remedy against cheque issuers who fail to make payment due to insufficient funds or the cheque being otherwise dishonored.
Relevant Law
- Section 138 – 147A, Negotiable Instruments Act, 1881
- Artha Rin Adalat Ain, 2003 (for cheque issued against loan defaults)
- Penal Code, 1860 (in rare cases involving fraud)
When is a Cheque Considered Dishonored?
A cheque is dishonored when:
- It is returned by the bank unpaid due to:
- Insufficient funds
- Account closed
- Payment stopped by drawer
- Irregular signature or overwriting
- Any other reason making the cheque invalid
Dishonor must be confirmed by a written memo from the bank indicating the reason for refusal.
Preconditions to Filing a Case Under Section 138

The following legal preconditions must be fulfilled before initiating a criminal case:
1. Cheque Issued for Legally Enforceable Debt
The cheque must have been issued in discharge of a lawful debt or liability.
2. Cheque Presented Within Validity Period
The cheque must be presented to the bank within 6 months (or the cheque’s validity period, whichever is earlier).
3. Notice to the Drawer
Upon dishonor, the payee must issue a written notice within 30 days of receiving the bank memo, demanding payment.
4. Failure to Pay Within 30 Days
If the drawer fails to make payment within 30 days of receiving the notice, a criminal case may be filed within one month from the expiry of that period.
Legal Procedure to File a Case
Step 1: Issue Legal Notice
- A demand notice must be issued to the cheque issuer via registered post or courier.
- The notice must clearly mention:
- Cheque details (number, date, amount)
- Reason for dishonor
- Demand for payment within 30 days
Step 2: Wait 30 Days
If the drawer fails to pay within this time, you may proceed to file a complaint.
Step 3: File Complaint in Magistrate’s Court
- File the complaint under Section 138 of the Negotiable Instruments Act.
- Submit the following documents:
- Copy of dishonored cheque
- Bank return memo
- Copy of legal notice and delivery proof
- Authorization letter (if filed on behalf of a company)
- Statement of complainant (to be recorded by the Magistrate)
Punishment Under Section 138
If found guilty, the court may impose:
- Imprisonment up to 1 year
- Fine up to the cheque amount (may be double in some cases)
- Compensation to the complainant
- Warrant of arrest in case of non-appearance
The court may also order civil recovery of the amount as part of the sentence.
Civil and Criminal Remedy Together
The complainant may simultaneously file:
- A criminal case under Section 138
- A civil suit for recovery of money
- If applicable, Artha Rin Suit in case of loan default by financial institutions
However, double recovery is not allowed—once satisfied, other proceedings may be withdrawn.
Time Limits
Action | Time Limit |
---|---|
Presenting cheque | Within 6 months of date on cheque |
Sending legal notice | Within 30 days of dishonor |
Filing case after non-payment | Within 1 month after 30-day period ends |
Failure to comply with these limits may result in dismissal on technical grounds.
Jurisdiction
The case must be filed in the court having jurisdiction over:
- The bank branch where the cheque was presented
(As per latest legal interpretation by the Supreme Court)
Defenses Available to the Drawer
The accused (drawer) may raise the following defenses:
- Cheque was not issued for a legally enforceable debt
- Cheque was stolen or used fraudulently
- Notice was not properly served
- Payment was already made in part/full
- Delay in filing the case
The burden initially lies on the drawer to rebut the presumption of liability under Section 139 of the Act.
Corporate Entities and Cheque Dishonor
If the cheque was issued by a company, the following may be held liable:
- The company itself
- Directors and persons in charge of the company’s affairs at the time of issuance
- Authorized signatories
A company can be prosecuted through its authorized representative.
Summary
Legal Requirement | Description |
---|---|
Governing Law | Negotiable Instruments Act, 1881 |
Offence | Criminal (bailable) |
Punishment | Up to 1 year imprisonment or fine or both |
Filing Deadline | Within 30+30+1 days (as explained above) |
Jurisdiction | Magistrate’s Court |
Civil Remedy Also Available | Yes |
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