The Negotiable Instruments Act of 1881 established laws governing negotiable instruments in India such as bills of exchange, cheques, and promissory notes. Section 138 of the Act defines penalties for bouncing of cheques due to insufficient funds. It makes the dishonoring of cheques for insufficiency of funds in the account of drawers as a criminal offense. The section aims to encourage settlement of transactions by cheques and provides creditor protection by enabling prosecution of drawers.

1. http://en.wikipedia.org/wiki/Negotiable_Instruments_Act,_1881
http://www.slideshare.net/altacitglobal/section-138-of-the-negotiable-instruments-act
http://www.legalserviceindia.com/articles/sec138.htm
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CCoQFjAC
&url=http%3A%2F%2Fsandeep-advocate.blogspot.com%2F2009%2F11%2Fsection-138-of-
negotiable-
instruments.html&ei=vUqZUMDYHMHtrQesioHIBw&usg=AFQjCNEfCaHN5piKYS1R6blERFSXEIHTpA
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CCQQFjAB
&url=http%3A%2F%2Fwww.vakilno1.com%2Fbareacts%2Fnegoinstruact%2Fchapter17%2Fs138.htm
&ei=vUqZUMDYHMHtrQesioHIBw&usg=AFQjCNFZmWsSBthK_q5Fi-4TzLD9kL53zQ
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CB8QFjAA
&url=http%3A%2F%2Findiankanoon.org%2Fdoc%2F1823824%2F&ei=vUqZUMDYHMHtrQesioHIBw&
usg=AFQjCNEo1NepPhHzlBX-p4rg42G6eLhsiQ
http://www.ddegjust.ac.in/studymaterial/mcom/mc-207-f.pdf