Cheque Dishonour Case in Bangladesh (Section 138 NI Act): Guide for Expats

Section 138 applies when a cheque issued in discharge of a debt or other liability is returned unpaid because of insufficient funds or because it exceeds the amount the drawer is entitled to draw from his account. A cheque returned for other reasons (such as a signature mismatch or account closed) may involve different provisions, so ask your advocate to read the bank memo. The cheque must be presented to the bank within its validity period (generally three months from its date).

This article is general legal information, not legal advice. Fees, forms and procedures change; confirm current requirements with the relevant office or a qualified advocate before acting.

1. Day 0: the bank returns the cheque with a dishonour slip (memo).
2. Within 30 days: send a written demand notice to the drawer, by registered post with acknowledgment and by other methods.
3. 30 days after the notice is received: the drawer can pay and end the case.
4. Within 30 days after that period ends: file the complaint before the Magistrate.

Count the days carefully. Time starts on the date you receive the bank's memo, and the notice must correctly state the cheque details and the amount.

• Identify the cheque: number, date, bank, branch and amount.
• State the debt or liability for which it was issued.
• Attach copies of the cheque and dishonour memo.
• Demand payment within 30 days.
• Send to the drawer's last known address and keep proof of delivery.

An advocate should draft it. A badly drafted notice is the most common reason cases fail.

The complaint is filed before the competent Magistrate (Metropolitan Magistrate in Dhaka and other metropolitan areas) with the cheque, bank memo, notice and proof of service. The court examines the complainant, issues summons or a warrant and proceeds to trial. The Act provides for speedy disposal, although in reality it may take months or years. The accused may be arrested if he does not appear.

On conviction, the court can order imprisonment up to one year, a fine of up to three times the amount of the cheque, or both, and may direct payment of the cheque amount to the complainant. A convicted person who appeals is usually required to deposit a part of the amount (10% under the amended law) with the appellate court. Many cases settle after the notice or after filing; any settlement should be written and, where possible, placed before the court.

1. Ask the person to pay by bank transfer or pay order, not a cheque.
2. If you receive a cheque, deposit it before the validity expires and monitor the date.
3. Appoint an advocate by Power of Attorney (see PoA guide) to send the notice and file the case in time.
4. Give the advocate originals through a trusted courier or a family member.
5. Plan a possible civil money suit in parallel.
6. If you are the one who issued a bounced cheque, call an advocate immediately: paying within the notice period can end the case.

This article is general legal information, not legal advice. Fees, forms and procedures change; confirm current requirements with the relevant office or a qualified advocate before acting.

Send the notice within 30 days of the bank memo and, if payment is not made in 30 days, file the complaint within 30 days after that.

Yes, your advocate can send the notice and file the complaint through a Power of Attorney, but you may be needed later to give evidence.

Imprisonment up to one year, a fine up to three times the cheque amount, or both.

If the drawer pays within the 30-day notice period, the offence is not made out and the case cannot proceed.

Yes. The criminal case does not stop you from filing a civil suit to recover the money.