Prepared For: Mr.

Asgar Ali
Professor
Prepared By: Mussarrat Binte Farid
ID# UG01-29-12-067

BBA Department
State University of Bangladesh
Cheques are very convenient
instruments which can be issued to
settle payments or obligations in a
contract or even to give gifts.
Dishonour of cheque is incorporated under
section 138.
When Bank refuses to honour cheques that is
called dishonour of cheques.
A dishonoured cheque is a cheque that cannot be
credited at the bank for a variety of reasons such
as unavailability of sufficient funds or in a case
where the drawer has stopped the crediting
process or signature mismatch.
In some circumstances it is also referred to as a
bounced cheque.
1. Either the amount of money standing to the
credit of that account is insufficient
2. Or it exceeds the amount arranged to be paid
from that account by an agreement made with
that bank.
The person who involved in dishonour of cheques
shall be deemed to have committed an offence
and
a) shall be punished with imprisonment for a term
which may be extended to one year
b) Or fine which may be extended to thrice the
amount of the cheque
c) Or with both
Provided that nothing contained in this section shall
apply unless-
1. The cheque must be presented to the bank within a
period of six months from the date on which it is
drawn.
2. The payee or the holder of the cheque should make a
demand for the payment in writing to the drawer of
the cheque within thirty days of the
acknowledgement from the bank regarding the
return of the unpaid cheque.
3. The drawer of such cheque fails to make the payment
of the said amount of money to the payee within
thirty days of the receipt of the said notice.


a) By delivering it to the person
b) By sending it by registered post
c) By publication in a daily Bangla national
newspaper
The public must see that the writing of dishonour
cheques is a significant corrupt practice and that
must be stopped. The public also should be
counseled that cheques should be issued only
when there are enough funds in the bank to
honour the cheques drawn, which would ensure
that paying banks would honor the cheques.
Punishment in the Act 138 should be followed
strictly for the dishonoured cheques.