By Advocate Md. Shah Alam · 2026-08-10 · 12 min read
In Bangladesh's commercial ecosystem, bounced and dishonoured cheques constitute one of the highest volumes of litigation. The governing statute is <strong>Section 138 of the Negotiable Instruments (NI) Act, 1881</strong>. While the law is formulated to ensure the sanctity of banking transactions and commercial trust, procedural deadlines are uncompromising: a single day's delay in dispatching the statutory legal notice or lodging the court complaint can render the entire action legally void. Written by <strong>Advocate Md. Shah Alam</strong>, Supreme Court of Bangladesh, this definitive 2026 practitioner guide navigates both complainant recovery strategies and accused defense tactics.
| Key Legal Aspect | Official Rule, Fee & Law (2026) |
|---|---|
| Governing Statute | Code of Criminal Procedure 1898 (Sections 496, 497, 498, 499) & Penal Code 1860 |
| Bail & Surety Requirement | Execution of Form-42 Bail Bond (PR Bond / Jamindar Surety) upon court bail order |
| Official Portals | supremecourt.gov.bd, judiciary.gov.bd, pcc.police.gov.bd & land.gov.bd |
| Supreme Court Chamber | Advocate Md. Shah Alam — Uttara & Dhaka Judge Court (+880 1712-655546) |
Section 138 makes it a quasi-criminal offence when a cheque drawn by a person on an account maintained by them with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid.
Penal Sanctions: The offence carries imprisonment for a term which may extend to one year, or with fine which may extend to thrice the amount of the cheque, or with both.
To succeed under Section 138, the complainant must follow a rigid calendar:
The statutory legal notice must be drafted by an enrolled advocate and dispatched via Registered Post with Acknowledgement Due (A/D). Alternatively, service via publication in a widely circulated national daily newspaper is recognized under the 2006 amendments.
The notice must demand the exact cheque amount without including extraneous interest calculations or damage claims that could confuse the drawer's statutory obligation.
Cases in Dhaka are adjudicated either by the Chief Metropolitan Magistrate (CMM) Court or transferred to the Courts of Joint District Judges for trial:
Have your property disputes, bail matters, family issues, or litigation documents reviewed in person by Advocate Md. Shah Alam at Uttara or Dhaka Judge Court.
An offence under Section 138 is bailable as of right. Upon receiving court summons or executing a surrender after warrant, the accused is entitled to bail upon furnishing local solvent sureties.
However, willful absence or defaulting on court dates results in cancellation of bail and issuance of non-bailable arrest warrants (WA) and attachment of property (WP&A).
One of the most consequential amendments in the NI Act is that no appeal against an order of conviction and sentence shall be entertained unless 50% of the fine (or cheque amount) awarded by the trial court is deposited in the court prior to admitting the appeal.
This statutory pre-deposit protects complainants against frivolous appeals designed solely to stall money recovery.
The Appellate Division of the Supreme Court has clarified principles protecting innocent borrowers against extortionate lenders:
If an NI Act case is filed without fulfilling statutory prerequisites or to harass a business director with no personal liability, the accused may approach the High Court Division under Section 561A Cr.P.C. to quash the proceedings and stay the trial.
Facing property litigation, criminal arrest risk, commercial dispute or constitutional infringement? Consult directly with Advocate Md. Shah Alam, Advocate, Supreme Court of Bangladesh.
📍 Chamber 1: House 46, Road 6/B, Sector 12, Uttara, Dhaka-1230 | Chamber 2: Supreme Court Bar Association Annex, Dhaka.
Yes. Section 138 carries a maximum penalty of 1 year imprisonment and a fine of up to three times the cheque amount.
Under Bangladesh postal rules and General Clauses Act, a notice dispatched to the correct address via registered post and returned with 'Refused' or 'Unclaimed' is deemed valid legal service.
Yes. Criminal proceedings under Section 138 and civil recovery suits under Order 37 of the CPC (Money Suit) can proceed simultaneously.