Section 138 of the Negotiable Instruments Act, 1881 deals with cases where a cheque is dishonoured due to insufficient funds or exceeding the agreed amount. It applies only if the cheque was issued for a legally enforceable debt. The payee must send a notice within 30 days, and if the drawer fails to pay within 15 days, a criminal case can be filed.

Cases under Section 138 include bounced cheques for loan repayments, business payments, or dues, aiming to ensure trust in financial transactions.

Section 138 of the Negotiable Instruments Act, 1881 deals with the dishonour of a cheque for insufficiency of funds or if it exceeds the amount arranged to be paid by the drawer’s account.