Under Section 138 of the Negotiable Instruments Act, 1881, if a cheque is dishonored due to insufficient funds or a closed account, the payee can initiate criminal proceedings against the drawer. The legal remedies include filing a complaint in a magistrate’s court, which may result in imprisonment up to 2 years, a fine up to twice the cheque amount**, or both. Before filing the complaint, the payee must send a legal notice within 30 days of receiving the bank’s return memo and allow 15 days for the drawer to make payment. If unpaid, the complaint must be filed within 30 days after that period.