New procedure before taking cognizance into 138 case

A cheque bounce case under Section 138 of the Negotiable Instruments (NI) Act must be filed in the court having jurisdiction over the branch of the bank where the payee (the person receiving the payment) maintains their account. According to the 2015 amendment (Section 142(2)), this is the primary location for initiating prosecution, regardless of where the cheque was handed over. 

The process of serving the summons to the accused shall be as per the procedures oif law as prescribed in law. 

A private criminal complaint for a cheque bounce under Section 138 of the Negotiable Instruments (NI) Act, 1881, is filed under Section 223 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 (formerly Section 200 CrPC), before a Judicial Magistrate First Class.

Do not have to invoke section 202 cr.p.c.

What exactly is meant by "New procedure"?

For taking congnizance into 138 case where accused resided out of the local jurisdiction.

Under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), cognizance for Section 138 NI Act (cheque dishonor) is taken by a Metropolitan/Judicial Magistrate (1st Class) where the payee's bank branch is located. If the accused resides outside this jurisdiction, a mandatory inquiry (similar to formerly Section 202 CrPC) is conducted, possibly through affidavit, before issuing process.

 Under Section 223(1) of the BNSS, the magistrate should hold a pre-cognizance hearing to ensure the accused is aware of the allegations before process is issued, according to recent interpretations.

Since the accused resides outside the jurisdiction, the court must conduct an inquiry to satisfy itself that sufficient grounds exist to proceed.

For this inquiry, the complainant’s evidence and witnesses may be submitted via affidavit. If satisfied, the court issues summons. If the accused avoids service, the BNSS provides accelerated procedures for declaring a person a proclaimed offender.

Very well explained, opined and advised by learned expert Mr. T Kalaiselvan, which I endorse and appreciate his acumen.

Punisment for dishonour of cheque is governed by Section 138 of Negotiable Instruments Act, 1881.

Under the provisions of BNSS 2023 you may file a complaint before jurisdictional Magistrate to proceed for the offence of cheating and fraud committed by the accused by issuance of cheque, which was issued knowingly / intentionally that it shall bounce.