Section 138 Procedure in Bihar – Sanjabij Tari 2025 · Summary Trial · Section 143A · Section 148 · Complainant Appeal.
Master the full criminal procedure under Section 138 NI Act in Bihar — from legal notice and complaint filing to summary trial, interim compensation, judgment, and appeal. Expert guidance on Section 138 Procedure from Advocate Md Manzar Alam, Patna High Court.
Section 138 Procedure is the criminal prosecution process under the Negotiable Instruments Act, 1881, commencing with complaint filing within 30 days of cause of action, followed by summary trial under Section 143, interim compensation under Section 143A, and appellate review under Section 148, culminating in conviction or acquittal. This process is conducted by a Judicial Magistrate First Class (JMFC) or Metropolitan Magistrate. Understanding the Section 138 Procedure is essential for both complainants and accused persons.
| Statutory Stage | Detail | Legal Basis |
|---|---|---|
| Notice Period | 30 days from receipt of dishonor memo | Section 138(b) NI Act; 2015 Amendment |
| Cure Period | 15 days from receipt of notice | Section 138(c) NI Act |
| Complaint Filing | Within 30 days of cause of action | Section 142(b) NI Act |
| Jurisdiction | Payee's bank branch location | Section 142(2)(a) NI Act; Jai Balaji Industries (2025 SC) |
| Summary Trial | Fast-track under Section 143 | Indian Banks Association (2014 SC); Sanjabij Tari (2025 SC) |
| Interim Compensation | Up to 20% of cheque amount | Section 143A NI Act (2018 Amendment); Rakesh Shrivastava (2024 SC) |
| Appeal Deposit | Minimum 20% of fine/compensation | Section 148 NI Act; Surinder Singh Deshwal (2019 SC); Jamboo Bhandari (2023 SC) |
| Compounding | At any stage before final judgment | Section 147 NI Act; Sanjabij Tari (2025 SC) |
Within 30 days of dishonor
The payee must send a statutory legal notice to the drawer within 30 days of receiving the bank's return memo. The notice must demand the exact cheque amount (the "said amount") and grant a 15-day cure period for payment. Under the Kaveri Plastics (2025 SC) Strict Identity Rule, any variance in the demanded amount renders the notice void ab initio. This is the first critical step in the Section 138 Procedure.
Service Methods: Speed Post/Registered Post with AD (primary); Email/WhatsApp (supplementary, per Rajendra v. U.P., 2024 All HC; Sanjabij Tari, 2025 SC).
No filing permitted
After the drawer receives the notice, the law grants a mandatory 15-day cure period to make the payment. The complainant cannot file the case during these 15 days. If the drawer pays within this period, the matter ends. If not, the offence is complete, and the cause of action arises. This is a non-negotiable part of the Section 138 Procedure.
Within 30 days of cause of action
The complaint must be filed before the Judicial Magistrate First Class (JMFC) within 30 days from the date the cause of action arises (i.e., 15 days after notice receipt + expiry of cure period). Under Section 142(2)(a), jurisdiction lies where the payee's bank branch is situated (if cheque delivered for collection through an account).
No pre-cognizance summons
The Magistrate scrutinizes the complaint and accompanying affidavit to take cognizance if all statutory elements are satisfied. Under the 2025 Supreme Court Guidelines in Sanjabij Tari, every complaint must now feature a mandatory synopsis at the top of the file. The Magistrate must take cognizance first, then issue summons after verifying documents.
Service of Summons: Under Sanjabij Tari (2025 SC), service shall include: ordinary modes (process server); dasti service by the complainant; electronic means (email, WhatsApp) with verified particulars; complainant must file an affidavit of service.
Section 143 fast-track
Section 143 mandates a summary trial for expeditious disposal. The Magistrate records the accused's plea (guilty or not guilty) under Section 251 CrPC / Section 274 BNSS. The complainant's initial affidavit serves as examination-in-chief (Indian Banks Association v. Devkala Consultancy Service, 2014 SC).
The trial culminates in either: Acquittal — defective notice, break in chain of custody, or successful rebuttal of Section 139 presumption; or Conviction — up to 2 years imprisonment and/or fine up to double the cheque amount (Section 138).
Ensure strict compliance with the 2025 SC mandatory synopsis and correct jurisdiction. Get your documents reviewed by a Patna High Court advocate.
On 25 September 2025, the Supreme Court in Sanjabij Tari v. Kishore S. Borcar (2025 INSC 1158) delivered a transformative judgment that redefined the Section 138 Procedure landscape. The Court issued the following systemic directions:
Standardized format at file top
Every complaint must contain a mandatory synopsis immediately after the index with: Parties, Cheque Details, Dishonour Particulars, Statutory Notice, Cause of Action, and Relief Sought.
Section 223 BNSS not applicable
No requirement to issue summons at the pre-cognizance stage under Section 223 of the BNSS. Magistrates must take cognizance first, then issue summons after verifying documents.
Dasti + Electronic
Service shall include: dasti service by complainant; electronic means (email, WhatsApp) with verified particulars; complainant must file an affidavit of service (false affidavit attracts penal action).
QR code/UPI links
District Courts shall create online payment facilities (QR code/UPI links) with the option to pay at the initial stage itself for speedy settlement.
Section 251 CrPC / 274 BNSS
Trial Courts shall ask the accused direct questions: Do you admit the cheque belongs to your account? Do you admit the signature? Did you issue/deliver this cheque? Do you admit you owed liability? State your defence clearly. Do you wish to compound?
Section 143A at earliest
Courts shall exercise power under Section 143A to order interim deposit at the earliest. Per Rakesh Ranjan Shrivastava (2024 SC), this is discretionary — not automatic. Court must record brief reasons.
Post-summons mandatory
After service of summons, matters should be placed before physical courts. Exemption from personal appearance to be granted only if warranted. This prevents misuse of digital courts for delay tactics.
Realistic pecuniary limits
Evening Courts for NI Act cases should have realistic pecuniary limits (higher than existing low thresholds such as ₹25,000).
Monitoring pendency
Dedicated dashboards for monitoring pendency and disposal of Section 138 cases. District Judges to conduct monthly reviews and forward quarterly reports to the High Court.
0% to 10% cost structure
Section 269SS IT Act not a bar
A cash loan of ₹20,000 or more does not cease to be a "legally enforceable debt" under Section 138 merely because it violates Section 269SS of the Income Tax Act, 1961.
Our team drafts complaints with the mandatory synopsis and full compliance with all Sanjabij Tari guidelines.
| Day | Action | Critical Check | Legal Basis |
|---|---|---|---|
| Day 0 | Receive bank dishonor memo | Preserve original; note exact date | Section 138(a) |
| Day 1-30 | Send legal demand notice | Exact "said amount"; 15-day cure period | Section 138(b); Kaveri Plastics (2025 SC) |
| Day 31-45 | Wait for 15-day cure period | No filing permitted during this window | Section 138(c) |
| Day 46 | Cause of action arises | Offence complete; 30-day filing window opens | Section 142(b) |
| Day 46-75 | File criminal complaint | Mandatory synopsis; correct jurisdiction | Sanjabij Tari (2025 SC); Jai Balaji (2025 SC) |
| Day 76-90 | Magistrate takes cognizance; issues summons | No pre-cognizance summons; dasti + electronic service | Sanjabij Tari (2025 SC); Ashok v. Fayaz (2025 Kar HC) |
| Day 91-120 | Accused first appearance; plea recorded | Bail secured; Section 251 CrPC / 274 BNSS questions | Sanjabij Tari (2025 SC) |
| Day 121-180 | Evidence phase; Section 143A application | Complainant's affidavit = examination-in-chief | Indian Banks Association (2014 SC); Rakesh Shrivastava (2024 SC) |
| Day 181-270 | Final arguments | Section 139 presumption rebuttal | Section 138; Section 118 NI Act |
| Day 271-365 | Judgment & sentencing | Conviction: up to 2 years + double cheque amount fine | Section 138 |
| Day 366+ | Appeal proceedings | Section 148 deposit: minimum 20% | Surinder Singh Deshwal (2019 SC); Jamboo Bhandari (2023 SC) |
Note: Statutorily, Magistrate courts are directed to conclude the trial within six months from filing. However, practical timelines typically range from 1-2 years depending on summons execution, cross-examinations, and local court backlogs.
The Negotiable Instruments (Amendment) Act, 2018 introduced Section 143A, empowering courts to order interim compensation:
Factors for Exercising Discretion: (1) Prima facie evaluation of complainant's case and accused's defense; (2) Financial distress of the accused; (3) Nature of transaction; (4) Relationship between parties; (5) Paying capacity of the accused; (6) Pendency of civil suit (if any); (7) Court must record brief reasons for its decision.
In an appeal by the drawer against conviction under Section 138, the Appellate Court may order the appellant to deposit a minimum of 20% of the fine or compensation awarded by the trial court. This amount is in addition to any interim compensation paid under Section 143A.
Key Implications:
Under Section 142(2)(a) of the NI Act (as amended in 2015), complaints must be filed:
Our team knows the Patna High Court standards and CJM court procedures inside out. Get expert representation for your Section 138 case.
Named holder of the cheque; legal heirs if deceased per Dhanasingh Prabhu (2025 SC).
Active partner authorized to file on behalf of firm per Dhanasingh Prabhu (2025 SC).
Authorized officer with board resolution/POA per Bijoy Kumar Moni (2024 SC).
Designated recovery officers; standard practice.
Registered trustees with official documents.
| Fatal Error | Consequence | Prevention |
|---|---|---|
| Jurisdictional Error | Complaint dismissed; barred ab initio | File where payee's bank branch is located (Jai Balaji 2025 SC) |
| Limitation Lapse | Permanent bar; complaint time-barred | Strict 30-day calculation from cause of action (B.R. Anand 2025 KHC) |
| Defective Synopsis | Complaint returned by registry | Mandatory 2025 SC format; filed at top of file |
| Premature Filing | Magistrate cannot take cognizance | Wait full 15-day cure period after notice receipt |
| Wrong Court | Filed before civil judge instead of JMFC | File only before JMFC or Metropolitan Magistrate |
| Notice Amount Mismatch | Notice void; complaint unsustainable | Demand exact cheque amount only (Kaveri Plastics 2025 SC) |
| Missing Proof of Service | Notice deemed not served | Preserve Speed Post receipts, email confirmations, WhatsApp blue ticks |
| Omnibus Demand | Notice invalid per Suman Sethi (2000 SC) | Separate principal from interest/costs clearly |
Get our comprehensive PDF checklist to ensure your complaint meets all statutory requirements and registry standards.
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Get personalized advice on your Section 138 Procedure from a Patna High Court advocate who has successfully handled hundreds of NI Act trials.
Senior Founder, Sugam Tax & Legal Multiservices LLP | Patna High Court
Bihar State Bar Council – Enrolment No. 3309/2010 | District Bar Association, Patna – Member ID: 8648
Md Manzar Alam is a seasoned Advocate of the Patna High Court with 15+ years of active standing at the Bar. He is the Senior Founder of Sugam Tax & Legal Multiservices LLP, specializing in Section 138 Procedure under the Negotiable Instruments Act, 1881.
Holding an LL.M. and an MBA in Finance & Operations (Jamia Hamdard, New Delhi), he provides rare dual-domain expertise essential for summary trials, interim compensation under Section 143A, appellate deposits under Section 148, and Debt Recovery Tribunal (DRT) coordination.
A single drafting error or missed limitation date can result in the permanent dismissal of your complaint. Get your case reviewed by a Patna High Court advocate to ensure strict compliance with the 2025 SC synopsis mandate, accurate jurisdiction, and proper Section 143A application drafting.
In-person at our Patna City office, or by phone / video call. We'll review your documents, assess jurisdictional readiness, and give you a clear strategy – at no charge.
Advocate Md Manzar Alam also available directly at:
+91 8252908693 | advocatemanzar.com
