Section 6 of negotiable Instruments act defines “cheque” as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form. Section 138 of the Negotiable Instruments Act, 1881, is a crucial provision that deals with the offence of dishonour of a cheque for insufficiency of funds or if it exceeds the amount arranged to be paid by the drawer's account. This section has been a subject of extensive debate and analysis, given its significance in the realm of commercial transactions and financial dealings. In this critical analysis, we will delve into the various aspects of Section 138, examining its historical background, legal implications, judicial interpretations, and its impact on the business and legal landscape.