Offence under Section 138 of the Negotiable Instruments Act is made out only after a cheque has bounced, i.e., when the cheque is presented in the bank and it is returned unpaid. Please read the article: Cheque bounce cases under Section 138 Negotiable Instruments Act Explained for details as to how this offence is defined and what are its ingredients.
In your case, it appears that you still have blank cheques signed by the person to whom you have lent money and have not presented them to the bank. In this situation, the above offence is not made out. Unless you present these cheques in the bank and unless these are returned unpaid by the bank and other ingredients mentioned in Section 138 (see above article) are satisfied, the offence of cheque bouncing is not complete.
If your opposite party has permitted you to present these cheque in the bank, then you may deposit them in the bank. If they are paid, then you get your amount. If they are returned unpaid, then you should follow the procedure mentioned in Section 138 (see above article) so as to take action against the other party under Section 138 of the above Act.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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