A dishonoured cheque may attract Section 138 when it was issued towards a legally enforceable debt or liability, the cheque was presented within the applicable period, payment was not made after the statutory demand notice, and the other requirements prescribed by law are satisfied.

The payee should preserve the original cheque, bank return memo and other relevant documents. A statutory demand notice must generally be issued to the drawer within the prescribed period after receiving information about the dishonour.

The drawer is generally given 15 days from the date of receipt of the statutory notice to make payment of the cheque amount. If payment is not made within this period, the cause of action for filing the complaint may arise.

Yes. Compliance with the statutory notice requirement is an important condition for maintaining a complaint under Section 138. The notice must demand payment of the cheque amount in accordance with law.

On conviction, the punishment may extend to imprisonment up to two years, or fine which may extend to twice the amount of the cheque, or both, subject to the applicable law and circumstances of the case.

It is advisable to obtain legal advice before issuing a statutory notice because incorrect particulars, limitation issues, defective demands or failure to comply with statutory requirements can affect the proceedings.