Cheque Bounce Notice in India: Send Your Section 138 Notice Within the Deadline
If a cheque you received has been dishonoured, Indian law gives you a strict, short window to send a cheque bounce notice - miss it, and you may lose your right to file a criminal complaint altogether. This guide sets out the exact statutory timelines under Section 138 of the Negotiable Instruments Act, 1881 and how KanoonPe drafts and dispatches your notice fast.
Quick summary
- What it is: A statutory demand notice sent to the drawer of a dishonoured cheque, demanding payment within 15 days.
- Governed by: Section 138 and Section 142 of the Negotiable Instruments Act, 1881.
- Best for: Payees/holders of a cheque that was returned unpaid by the bank, typically for insufficient funds.
- KanoonPe price: Flat, all-inclusive quote on a free callback · Delivery: Same day to 1 working day.
Quick facts
| Detail | Information |
|---|---|
| Governing law | Section 138 & Section 142, Negotiable Instruments Act, 1881 |
| Registration/stamping required | Not required - it is a statutory demand letter |
| Notice deadline | Must be sent within 30 days of receiving the bank's dishonour/return memo |
| Drawer's payment window | 15 days from receipt of the notice to pay |
| Complaint filing deadline | Within 30 days (1 month) after the 15-day payment window lapses |
| KanoonPe price | Flat, all-inclusive quote - request a free callback |
| Delivery timeline | Same day to 1 working day |
| Penalty on conviction | Imprisonment up to 2 years and/or fine up to twice the cheque amount |
What is a Cheque Bounce Notice?
A Cheque Bounce Notice is a mandatory written demand sent by the payee or holder of a dishonoured cheque to the drawer, under Section 138 of the Negotiable Instruments Act, 1881, demanding payment of the cheque amount within 15 days. Sending this notice within the statutory deadline is a legal precondition to filing a criminal complaint for cheque dishonour.
A cheque "bounces" when the bank returns it unpaid, most commonly due to insufficient funds, a signature mismatch, or account issues. Section 138 makes this a criminal offence, but only once the strict notice-and-wait procedure below is followed.
The Section 138 timeline you must follow
- Step 1 - Cheque dishonoured: The bank returns the cheque unpaid and issues a dishonour/return memo to the payee.
- Step 2 - Send notice within 30 days: The payee must send a written demand notice to the drawer within 30 days of receiving the bank's dishonour memo, demanding payment of the cheque amount.
- Step 3 - Drawer gets 15 days to pay: The drawer has 15 days from receipt of the notice to pay the cheque amount in full.
- Step 4 - Cause of action arises: Only if the drawer fails to pay within those 15 days does a cause of action arise to file a criminal complaint under Section 138.
- Step 5 - File complaint within 30 days: The complaint must be filed before a Magistrate within 30 days (1 month) after the 15-day payment window expires, as required under Section 142 of the Act.
Missing either the 30-day notice deadline or the 30-day complaint-filing deadline can permanently bar you from prosecuting the cheque bounce, so these dates must be tracked precisely from the day the dishonour memo is received.
What the notice must contain
- Cheque details - cheque number, date, amount, and drawee bank.
- Date of dishonour and reason - as stated in the bank's return memo (e.g., insufficient funds).
- Statement of facts - the underlying transaction for which the cheque was issued.
- Demand for payment - a clear demand for the full cheque amount within 15 days of receipt of the notice.
- Reference to Section 138 - citing the statutory basis and consequence of non-payment.
- Sender and recipient details - full names and addresses of payee and drawer.
- Lawyer's signature - strengthens the notice's credibility and evidentiary value.
Who should use a Cheque Bounce Notice
- Businesses and vendors who received a dishonoured cheque as payment for goods or services.
- Lenders whose borrower's repayment cheque bounced.
- Landlords whose tenant's rent cheque was returned unpaid.
- Any individual holding a dishonoured cheque who wants to preserve the right to file a Section 138 complaint.
Information and documents needed to draft it
- Original cheque copy (front and back)
- Bank's cheque return memo/dishonour memo with date
- Details of the underlying transaction (invoice, agreement, or loan record)
- Payee and drawer names and addresses
- Amount claimed
Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for your cheque bounce notice within one business hour.
Drafting and delivery process
- Share case details and documents. Upload the dishonoured cheque, bank return memo, and transaction details via a short form.
- Lawyer drafts the notice. A lawyer prepares a Section 138-compliant notice citing the cheque details, dishonour date, and 15-day demand.
- Review. You review the draft to confirm the cheque and transaction details are accurate.
- Notice sent via registered post/speed post/courier. The notice is dispatched immediately with proof of dispatch, since the 30-day sending deadline is strict.
- Next steps guidance. If the drawer doesn't pay within 15 days, we advise on filing the criminal complaint within the following 30-day window.
Cheque bounce notice drafting cost in India
| Cost component | What drives it |
|---|---|
| Lawyer drafting fee | Complexity of transaction, amount involved |
| Postal/courier charges | Included for RPAD/speed post dispatch |
| Follow-up guidance | Included for advice on complaint filing if unpaid |
KanoonPe offers a flat, all-inclusive quote - lawyer-drafted Section 138 notice with urgent dispatch, so you never miss the 30-day deadline.
Delivery timeline
| Stage | Typical time |
|---|---|
| Case detail collection | Same day |
| Draft notice | Same day |
| Review & dispatch | Same day to 1 working day |
| Total | Same day to 1 working day |
Sending and legal notes
A cheque bounce notice does not require stamping or registration - it is a statutory demand letter, not a contract. It must be sent via registered post with acknowledgement due (RPAD) or speed post/courier with proof of dispatch, since you will need to prove the notice was sent within the 30-day deadline if the matter proceeds to court. On conviction, Section 138 provides for imprisonment of up to 2 years and/or a fine of up to twice the cheque amount, which is why drawers frequently settle once a properly drafted notice is received.
Common mistakes and risks
- Missing the 30-day notice deadline - sending the notice even one day late from receipt of the bank's dishonour memo can bar the complaint entirely; this is the single biggest risk in cheque bounce cases.
- Missing the 30-day complaint-filing deadline - even with a valid notice, failing to file the complaint within 30 days after the drawer's 15-day payment window lapses forfeits the right to prosecute (though courts can condone delay only in limited circumstances with sufficient cause).
- Filing the complaint too early - filing before the drawer's 15-day payment window has expired makes the complaint premature and liable to be dismissed.
- No proof of dispatch - sending by ordinary post leaves no evidence the notice was sent within the deadline.
- Incorrect cheque or transaction details - errors in cheque number, amount, or dates can weaken the case in court.
Why choose KanoonPe
- Transparent flat pricing - one all-inclusive number for drafting and dispatch, with no add-on fees.
- Filed-on-time or refund - every notice is drafted and dispatched within the statutory deadline, backed by our SLA.
- One accountable case owner - a dedicated lawyer manages your notice from brief to dispatch.
- Live status tracking - track drafting and dispatch status in your dashboard.
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