Disclaimer

Please take a moment to read this short note. In brief: this website is for general information only, you are here of your own choice, and nothing on it is an advertisement or a solicitation of work.

As per the rules of the Bar Council of India, advocates are not permitted to solicit work or advertise.

By clicking "I Agree" below, the user acknowledges and confirms the following:

1. There has been no advertisement, personal communication, solicitation, invitation, or inducement of any sort whatsoever from Adv. Suryanarayan M. Nadar or any of his associates to solicit any work through this website.

2. The purpose of this website is to provide the user with information about Adv. Suryanarayan M. Nadar, his qualifications and areas of practice, for the user's own information and use, provided entirely at the user's own request.

3. The information provided on this website is solely available at the user's request for informational purposes only. It should not be interpreted as soliciting or advertising.

4. The information contained herein does not constitute legal advice. It is not intended to create, and the receipt of it does not constitute, a lawyer-client relationship.

5. In cases where the user has any legal issues, they must seek independent legal advice from qualified legal practitioners.

6. This website is designed and maintained in compliance with the rules and regulations prescribed under the Advocates Act, 1961 and the Bar Council of India Rules (Part VI, Chapter II).

7. The contents of this website are the intellectual property of Adv. Suryanarayan M. Nadar.

By clicking "I Agree," you acknowledge that you wish to gain more information about Adv. Suryanarayan M. Nadar at your own accord and that there has been no form of solicitation.

Home About Services Legal Principles Resources The Act FAQ Judgments Contact

Stages of a Section 138 Matter

For general information, the following are the stages at which a matter under Section 138 of the Negotiable Instruments Act ordinarily arises. This is a description of the area of practice, not an offer of services or a solicitation of work.

Statutory Demand Notice

The demand notice under the proviso to Section 138, which must be issued within 30 days of receipt of the bank's return memo.

Complaint Under Section 138

The criminal complaint before the Magistrate, to be filed within the period of limitation.

Cognizance & Jurisdiction

Cognizance of the complaint under Section 142, the period of limitation, and territorial jurisdiction under Section 142(2).

Trial & Evidence

Summary trial under Section 143, and the complainant's evidence on affidavit under Section 145, subject to cross-examination.

Settlement & Compounding

Compounding of the offence under Section 147, and recording of negotiated settlements.

Presumptions

The presumptions under Sections 118 and 139, and the manner in which they may be rebutted.

Appeals

Appeals from Section 138 judgments before the Sessions Court and the Bombay High Court.

Interim Compensation & Deposit

Interim compensation during trial under Section 143A, and the deposit on appeal under Section 148.

Points Worth Understanding

The 30-Day Notice Period

The statutory demand notice must be issued within 30 days of receipt of the bank's return memo. Failure to do so within this period may bar a complaint under Section 138.

The Section 139 Presumption

Once execution of the cheque is admitted or proved, Section 139 raises a presumption that it was issued for a debt or liability. The presumption is rebuttable by the accused.

Both Sides of a Matter

A Section 138 matter has two sides — the holder of the dishonoured cheque and the person who has received a notice or summons. Each has distinct rights and defences under the Act.

How a Section 138 Matter Ordinarily Proceeds

1

Return of the Cheque

The cheque is dishonoured and the bank issues a return memo. The date of receipt of that memo starts the statutory 30-day period.

2

Demand Notice

A written demand notice is issued within 30 days, and the drawer has 15 days from its receipt to make payment.

3

Complaint & Trial

If payment is not made, a complaint may be filed within limitation and the matter proceeds to trial before the Magistrate.

4

Outcome

The matter may end in acquittal, conviction, compounding or settlement, subject to any appeal provided by law.

Adv. Suryanarayan M. Nadar Advocate · Negotiable Instruments Act, Section 138 · Malad West, Mumbai.
Call the Chambers Contact Details