Once cheque is issued and fund insufficient as per bank's Note then you should proceed by sending Legal Notice and file a case as per provision of N.I.Act.One judgment reference:-- Bombay High Court Nagpur Bench : Nagpur vs Sitabuldi, Nagpur on 27 March, 2012 Bench: A.P. Bhangale 1 Cri. Appeal 557/06 IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH : NAGPUR Criminal Appeal No. 557 of 2006 Appellant : Yugalkishore Maniklal Bhattad (HUF), through its Karta Yugalkishore s/o Maniklal Bhattad, aged about 52 years, occ: service, resident of Tekdi Line, Sitabuldi, Nagpur versus Respondent : Shrikrishna Gupta, Proprietor, M/s Maharashtra Lime Trading Company, Chuna Oli, Maskasath, Itwari, Nagpur Mr S. V. Bhutada, Advocate for appellant Mr R. K, Tiwari, Advocate for respondent Coram : A. P. Bhangale, J Dated : 27th March 2012 "Respondent-accused is held guilty of the offence punishable under Section 138 of the Negotiable Instruments Act and he is directed to suffer simple imprisonment till rising of the Court and to pay a fine in the sum of Rs. 60,000/- (Rupees Sixty thousand only), in default, to suffer rigorous imprisonment for three months. On request made by learned counsel for the respondent, respondent is granted four weeks' time from today to pay the amount of fine. If the amount of fine is recovered, the same shall be paid to the complainant as compensation in view of provisions of Section 357 of the Code of Criminal Procedure."