Dishonour of cheque due to insufficient funds is governed by Section 138 of the Negotiable Instruments Act, 1881.
Procedure:

•  A statutory legal demand notice must be issued by the payee within 30 days of receiving dishonour memo from bank.
• If payment is not made within 15 days, a criminal complaint may be filed before the Magistrate within limitation period.
• The accused faces trial before the Judicial Magistrate First Class.

Section 139 presumes liability of the drawer, subject to rebuttal. Section 142 mandates cognizance only upon a written complaint.
Conviction may result in imprisonment up to two years or fine up to twice the cheque amount, or both.