Section 142 of NIA : Section 142: Cognizance Of Offences

Explanation using Example

Imagine John issues a cheque to Alice for Rs. 50,000. Alice deposits the cheque into her bank account, but it gets bounced due to insufficient funds in John's account. Under Section 142 of The Negotiable Instruments Act, 1881:

• Alice, as the payee, must file a written complaint to initiate legal action against John for the cheque bounce.
• She needs to do this within one month from the date when she learned the cheque has bounced.
• Only a Metropolitan Magistrate or a Judicial Magistrate of the first class can hear this case.
• The court that will try the offence must be within the local jurisdiction where Alice's bank account is located, as the cheque was delivered for collection through her account.

If Alice fails to file the complaint within one month, she may still be able to proceed if she can convince the court that there was a sufficient reason for the delay.