Cheque Bounce Notice Format India (2026) – Section 138 Guide

Cheque Bounce Notice in India – Section 138 Guide

A cheque bounce can involve strict statutory timelines. Understand the notice process, preserve your evidence and prepare your next step carefully.

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What Happens When a Cheque Bounces?

Section 138 of the Negotiable Instruments Act, 1881 provides a legal mechanism in specified cheque-dishonour cases involving a legally enforceable debt or liability.

The statutory demand notice is an important part of this process. The relevant dates should be checked carefully before taking action.

Important: Do not rely only on the date printed on the cheque. Preserve the cheque, bank return memo and proof relating to the underlying transaction.
Cheque Bounce Legal Notice India Section 138

Section 138 – Key Timeline

  1. The cheque is presented and returned unpaid in circumstances covered by Section 138.
  2. The payee or holder in due course must make a written demand for payment within 30 days of receiving information from the bank regarding dishonour.
  3. After receiving the notice, the drawer has 15 days to make payment.
  4. If payment is not made within that period, the statutory cause of action may arise for filing a complaint under Section 138.
  5. Section 142 generally requires the complaint to be filed within one month from the date the cause of action arises, subject to the court’s power to condone delay where sufficient cause is shown.
⚠️ Exact dates matter. Calculate the timeline from your actual bank return information and receipt/service of the demand notice.

What Should a Cheque Bounce Notice Contain?

A properly prepared notice will usually identify:

  • Sender and recipient details
  • Background of the transaction
  • Legally enforceable debt or liability claimed
  • Cheque number, date, bank and amount
  • Dishonour and bank return details
  • Demand for payment of the cheque amount
  • Relevant statutory timeline
  • Consequences of failure to make payment

Before Drafting: Check What You Can Prove

A legal notice is stronger when the facts stated in it are supported by documents and other reliable evidence.

✓ Original / Copy of Cheque
Preserve cheque details and available copies.
✓ Bank Return Memo
Keep the dishonour memo or bank communication.
✓ Transaction Proof
Agreement, invoice, loan record, account statement or other supporting material.
✓ Communications
Preserve relevant emails, messages and written acknowledgements.
VakilDost principle: Don’t just know the law. Know what you can prove.

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Sample Cheque Bounce Notice

You can also view the general sample notice format available on VakilDost. A sample should not be treated as a substitute for a notice prepared for the facts and dates of a specific matter.

View Sample Notice PDF

What Happens After the Notice?

If the statutory requirements are satisfied and payment is not made within the prescribed period after receipt of notice, the next stage may involve filing a complaint before the competent court.

Read Cheque Bounce Filing Process

Frequently Asked Questions

Is a demand notice required for a Section 138 complaint?
Section 138 contains a statutory written-demand requirement that must be satisfied for the offence contemplated by that provision.

How much time is available to send the demand notice?
The statutory demand must be made within 30 days of receiving information from the bank regarding return of the cheque unpaid.

How long does the drawer have to make payment?
The drawer is given 15 days from receipt of the statutory notice to make payment.

Can I use a standard sample notice?
A sample can help explain structure, but the facts, dates, transaction, cheque information and demand should match the specific matter.

Important Disclaimer

VakilDost provides legal information and AI-assisted drafting tools. It does not guarantee any legal outcome. AI-generated content may contain errors and should be independently reviewed before legal use. Where deadlines, jurisdiction or substantial rights are involved, consider obtaining advice from a qualified legal professional.