• Sec 138 state that drawer of a cheque is liable to be punished if the cheque is bounded as Insufficient funds.
• Section 138 of the Negotiable Instruments Act, 1881 in India, deals with the dishonour of cheques due to insufficient funds.
• The section makes the drawer of the cheque (the person who issues the cheque) liable for punishment in case the cheque is dishonoured by the bank due to insufficient funds in the account or any other reason.

Under this section, if a cheque is dishonoured by the bank due to insufficient funds or any other reason, the payee (the person to whom the cheque is issued) can file a complaint against the drawer of the cheque within 30 days from the date of receipt of the cheque return memo from the bank.