Sec. 138or sec. 420 - which is better ?

You can file a cheque bounce case u/s 138 NI Act or a case for cheating you u/s 420, but in both the cases you have to prove the legally liable debt after which the accused will punished as per laws but there is no guarantee that you will get back your money through compensation because it is purely the discretion of the presiding officer of the court to order for compensation amount besides punishment for the offence hence recovery of money through a civil court though time consuming may being some respite one day.  Least but not last, try recovery through your influence through Police.  Advocate Kalaiselvan, Vellore, Ph: +919443441062

police may not be entertain these case because they said that this is a civil cvase or cheque bouncing case so go to court to file a case. you can file a case u/s 138 of NI Act read with sec-420 of IPC

In my opinion the offence of dishonour of cheque u/s 138 is punishable by NI Act and the offence of cheating or fraud is punishable by CRPC.Both are different offences and separately trialed.Both the proceedings can be started separately having to pressurise the accused to have early results.A civil suit for recovery must be filed separately.