VakilDost™ legal education guide • Section 138, Negotiable Instruments Act, 1881 • Updated October 2026

Cheque Bounce Notice Format in India: Sample & Time Limits (2026)

When a cheque is returned unpaid, a written demand notice may be needed before a complaint under Section 138 of the Negotiable Instruments Act, 1881. This page explains what the notice ordinarily contains, a sample structure, which records to keep, and the important statutory deadlines. The exact course depends on the cheque, the underlying legally enforceable debt, the bank memo, and the facts.

Free educational sample, not a ready-to-send legal opinion. Replace every placeholder, verify the current statute and legal requirements, and obtain individual professional review where necessary. No outcome is guaranteed.

1. Section 138 notice time limits

30 days The payee/holder in due course ordinarily has to issue the written demand notice within 30 days after receiving information from the bank that the cheque was returned unpaid.
15 days The drawer has 15 days from receipt of the statutory notice to pay the amount demanded.
One month Where the legal requirements are met and payment is not made within the 15 days, Section 142 generally provides one month from the arising of the cause of action for filing a complaint, subject to its proviso.

These are different starting points. Do not calculate all periods from the date written on the cheque. The statutory presentation/validity requirement also matters.

2. Free cheque bounce notice sample format

WITHOUT PREJUDICE TO APPLICABLE LEGAL RIGHTS

Date: [DATE]

To: [FULL NAME OF DRAWER]
Address: [CORRECT SERVICE ADDRESS]

Subject: Statutory demand for payment of dishonoured cheque under Section 138 of the Negotiable Instruments Act, 1881

Sir/Madam,

On behalf of [PAYEE / HOLDER IN DUE COURSE], the following facts are stated:

  1. In discharge of a legally enforceable debt or liability arising from [ACCURATE TRANSACTION DETAILS], you issued cheque no. [NUMBER], dated [DATE], drawn on [BANK AND BRANCH], for ₹[AMOUNT].
  2. The cheque was presented through [BANK] on [DATE]. It was returned unpaid as shown by the return memo dated [DATE], stating [REASON AS SHOWN IN BANK MEMO].
  3. The payee received information about the dishonour from the bank on [DATE].
  4. You are hereby called upon to pay the cheque amount of ₹[AMOUNT] within 15 days of receipt of this notice.
  5. If payment is not made within that statutory period, the payee may take lawful action, including considering proceedings under Section 138, subject to applicable conditions.

Payment details: [SAFE PAYMENT ARRANGEMENTS]
From: [NAME AND CONTACT ADDRESS]
Signature: [ISSUER / AUTHORISED SIGNATORY]

This is a simplified learning illustration. A notice must reflect actual provable facts. In particular, the statutory demand for the cheque amount should be clear; additional claims, if any, need separate careful treatment.

3. Documents and proof checklist

  • Cheque copy or scan, with cheque number, date, amount and drawer’s details.
  • Bank return memo and the date the dishonour information was received.
  • Invoices, loan records, agreements, account statements, messages or other evidence of the underlying debt or liability.
  • Full, correct names and addresses for the payee and drawer.
  • Final signed notice, postal/courier dispatch record and available delivery or tracking proof.
  • A dated record of any response, settlement or payment after notice.

4. Errors to avoid

  1. Using the cheque date as the only deadline. The law ties important periods to bank information and receipt of notice.
  2. Demanding only an unrelated amount. A valid Section 138 notice needs a clear demand for payment of the relevant cheque amount.
  3. Ignoring the debt evidence. The underlying debt or other liability must be legally enforceable for the statutory offence to apply.
  4. Missing proof of service. Preserve the dispatch and delivery records; service questions can become disputed.
  5. Using a sample unchanged. The correct addressee, dates, jurisdiction and legal grounds must be checked for the particular matter.

5. Is a cheque bounce notice always the same as a money-recovery notice?

No. An ordinary civil demand for repayment is not automatically a valid statutory notice under Section 138. The Section 138 notice is tied to a dishonoured cheque and specific statutory conditions. A general debt-recovery demand may have different timing and legal requirements. Choosing the correct route depends on the facts.

6. Frequently asked questions

Can I copy this format and send it as it is?

No. It is an educational example. Verify the legally enforceable debt, the bank return memo, the correct recipient and address, statutory dates, and wording before using a notice.

When does the drawer’s 15-day payment period begin?

Section 138 refers to 15 days from the drawer’s receipt of the demand notice, not simply the date it was drafted.

What if the statutory period has already passed?

The response depends on the exact timeline, possible later lawful presentation, and applicable provisions. Do not assume an expired deadline can automatically be revived. Seek advice promptly on the facts.

Should I keep the original cheque and bank memo?

Yes. Preserve original financial documents and contemporaneous records; their admissibility and evidentiary importance can depend on the proceeding.

7. Related free VakilDost™ guides

8. Official legal source

Read the Negotiable Instruments Act, 1881 on India Code, especially Sections 138, 139 and 142, before relying on any timeline or format.

About this guide: VakilDost™ is an India-focused legal literacy project founded by Advocate Rajat Kaushik. This content is general legal information, not case-specific advice, an assurance of success, or an advocate-client relationship.