Cheque Dishonour Case Law Bangladesh: Your Legal Rights

Yes. Under Section 138 of the Negotiable Instruments Act 1881 (as amended in Bangladesh), the dishonour of a cheque for insufficient funds or other reasons related to the drawer's account is a criminal offence. The law was strengthened through subsequent amendments to deter the practice of issuing cheques without adequate funds.

The purpose of this provision is to maintain faith in commercial transactions. Cheques are used extensively in business dealings in Bangladesh, and their dishonour disrupts commerce. Courts in Dhaka and across Bangladesh handle thousands of cheque dishonour cases annually. If your cheque has bounced, you should consult a criminal lawyer in Uttara or Dhaka immediately.

For a cheque dishonour offence to be established, three conditions must be met:

1. The cheque was drawn for discharge of a legally enforceable debt or liability.
2. The cheque was presented to the bank within its validity period (typically 6 months).
3. The bank returned the cheque unpaid due to insufficient funds or the account being closed, and the payee sent a demand notice within 30 days.

If the drawer fails to pay within 15 days of receiving the demand notice, the payee may file a criminal complaint within 30 days of expiry of the 15-day period. Strict adherence to these time limits is essential — missing them can defeat the case entirely.

Following these steps carefully ensures your case is legally sound:

1. Obtain the bank's dishonour memo — the official letter from the bank explaining why the cheque was returned.
2. Send a legal demand notice to the drawer within 30 days of receiving the dishonour memo.
3. Wait 15 days for the drawer to make payment.
4. If payment is not made, file a criminal complaint in the Magistrate Court within the next 30 days.
5. Attend hearings; the Magistrate will summon the accused and take cognisance of the offence.

Do not delay at any stage. The timelines are statutory and courts are strict about enforcement.

The demand notice is a critical first step. It must:

• Be in writing and sent to the drawer's last known address
• State the cheque number, date, amount, and bank details
• Demand payment of the full cheque amount within 15 days
• Be sent by registered post with acknowledgement due (RPAD) to prove delivery

Retain the postal receipt and the returned acknowledgement card as evidence. If the letter is refused or returned, this itself is evidence that the drawer evaded the notice. Have a lawyer draft the notice to ensure it covers all required legal elements.

The complaint must be filed in the Magistrate Court that has jurisdiction over the area where the cheque was presented or where the payee resides. The complaint must include:

• Original dishonoured cheque
• Bank's dishonour memo
• Copy of the demand notice sent
• Postal receipt and delivery acknowledgement
• A sworn statement (affidavit) setting out the facts

The Magistrate will examine the complaint, and if satisfied that an offence is prima facie made out, will issue a summons to the accused drawer. A bail lawyer in Dhaka can assist accused persons in obtaining bail promptly after summons is issued.

Once the Magistrate takes cognisance, the accused is tried. The trial follows the criminal procedure for summary or summons cases. Punishment upon conviction under Section 138 NI Act as applicable in Bangladesh includes:

• Imprisonment up to one year, or
• A fine up to three times the cheque amount, or
• Both imprisonment and fine

Courts frequently order the fine amount equivalent to the cheque as compensation to the payee, in addition to any imprisonment. The accused may still discharge the liability by paying the cheque amount — courts may consider this as a mitigating factor.

Filing a criminal case does not preclude a civil remedy. The payee may simultaneously file a Money Suit in the Civil Court (Artha Rin Adalat or the regular Civil Court depending on the nature of the debt) to recover the cheque amount, interest, and costs.

Alternatively, if the debt arises from a bank loan or financial institution, the Artha Rin Adalat Ain 2003 provides a specialised forum for recovery. A combined legal strategy — criminal case plus civil money suit — is often the most effective approach to recovering dues.

If you are accused of a cheque dishonour offence, certain defences may be available:

• The cheque was not issued for a legally enforceable debt (e.g., it was a security cheque or a gift)
• The cheque was issued under coercion or fraud
• The demand notice was not properly served or was sent beyond 30 days
• The complaint was filed outside the limitation period
• The cheque was materially altered after issue

These are technical defences that require careful legal analysis. Contact an experienced criminal lawyer in Uttara or Dhaka to assess what defences apply in your case.

Within 30 days of receiving the bank's dishonour memo, you must send a legal notice. After 15 more days, you have 30 days to file the criminal complaint. Act quickly.

Yes. On conviction, the court can sentence the drawer to up to one year in prison, a large fine, or both.

If payment is not made within 15 days of the notice, you can file a criminal complaint in the Magistrate Court.

Yes. You can file a criminal case under the NI Act and simultaneously a civil money suit to recover the cheque amount.

Yes, extremely. Courts dismiss cases filed even a day outside the limitation period. Consult a lawyer without delay.

Yes. If the accused pays the full amount, the complainant may withdraw the case. Compounding (settlement by payment) is permitted in cheque cases.

This is a valid defence — if the cheque was not given to discharge a specific existing liability, the Section 138 offence may not be made out.

Cheque dishonour cases are bailable offences. Bail is usually granted by the Magistrate Court as of right, often on the same day of summons appearance.