Cheque Bounce Recovery in Bangladesh: 30-Day Legal Notice & Section 138 NI Act Lawsuit Guide

A cheque dishonour lawsuit under Section 138 of the Negotiable Instruments Act 1881 is maintainable under any of the following bank return memo endorsements:

• Insufficient Funds (অপর্যাপ্ত তহবিল): Account balance is less than the cheque value.
• Payment Stopped by Drawer (পেমেন্ট স্থগিত): Drawer instructed bank not to honor cheque.
• Account Closed / Frozen (হিসাব বন্ধ): Account was terminated prior to presentation.
• Exceeds Arrangement: Amount exceeds credit limit arranged with the bank.

Consult a qualified Corporate & Financial Lawyer in Dhaka upon receiving the bank memo.

Unlike civil suits which have multi-year limitation periods, Section 138 NI Act operates on an unforgiving timeline:

The legal notice (আইনি নোটিশ) must be served through one of three statutory modes under Section 138(b):

1. By delivering it personally to the drawer.
2. By sending it by registered post with Acknowledgement Due (AD) to the drawer's last known address.
3. By publication in a widely circulated daily national newspaper.

The notice must give the drawer 30 days to pay the cheque amount in cash or bank transfer.

If the drawer fails to pay within 30 days of receiving the notice, file a complaint petition under Section 138/141 NI Act before the Chief Metropolitan Magistrate (CMM) or Chief Judicial Magistrate (CJM) Court having territorial jurisdiction over the bank branch.

Required Documents:

• Original bounced cheque & original Return Memo.
• Copy of Registered Legal Notice & Postal AD Receipt.
• Complainant's NID copy & business contract/invoice (if any).

Upon conviction under Section 138:

• The court can sentence the accused to imprisonment up to 1 year.
• The court can impose a fine of up to 3 times the face value of the cheque.
• Under Section 138(2), the fine realized is paid directly to the complainant to cover the debt.

A common defense raised by accused drawers is claiming that the cheque was issued merely as a 'Security Cheque' for a loan or contract.

In landmark decisions (such as Majeed Lesters vs. State and subsequent High Court judgments), the Supreme Court of Bangladesh clarified that a security cheque is fully enforceable under Section 138 NI Act once an underlying financial liability exists and remains unpaid.

If a conviction order is passed against an accused drawer:

• 50% Mandatory Deposit Rule: Under Section 138A NI Act, the convicted person CANNOT file an appeal in the Sessions Court without first depositing at least 50% of the fine amount with the trial court.
• This statutory deposit rule prevents frivolous delays by convicted debtors.

Cheque dishonour litigation hinges on technical perfection in notice serving, jurisdiction selection, and proof of debt.

Advocate Md. Shah Alam — Supreme Court Advocate practicing at CMM Courts Dhaka and High Court Division — has a proven track record of recovering millions in bounced cheque claims for corporate and individual clients.

⚖️ Have a Bounced Cheque to Recover? Contact Supreme Court Advocate Advocate Md. Shah Alam immediately before your 30-day notice window expires. Visit our Business Law Page or Contact Us Directly.

No. Section 138 criminal remedy is permanently lost if notice is not dispatched within 30 days of receiving the return memo. However, you can still file a civil Money Suit (অর্থ মামলা) within 3 years under the Limitation Act.

Yes, Section 138 NI Act is a bailable and compoundable offence. The accused can obtain bail upon appearing in court and depositing a bail bond.

Yes. Under Section 140 NI Act, if a cheque is issued by a company, both the corporate entity and every director/officer responsible for business operations are liable to prosecution.

Yes. Supreme Court precedent holds that issuing 'Stop Payment' instructions to evade debt constitutes dishonour under Section 138.