EnglishCheque Bouncev1

Cheque Bounce Notice (Section 138 NI Act)

Demand notice under Section 138 of the Negotiable Instruments Act, 1881 for a dishonoured cheque: sent within 30 days of the bank's return memo, it gives the drawer 15 days to pay.

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Your document — Cheque Bounce Notice (Section 138 NI Act)
LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

Date: _______________

To,
_______________
_______________

Subject: Demand notice for the dishonour of Cheque No. _______________ dated _______________ for Rs. _______________/-

Dear _______________,

I, _______________, residing at _______________, give you this notice under clause (b) of the proviso to Section 138 of the Negotiable Instruments Act, 1881.

1. You issued Cheque No. _______________ dated _______________, drawn on _______________, _______________, for Rs. _______________/- (Rupees _______________ only) in my favour towards _______________.

2. I presented the cheque on _______________. It was returned unpaid, as the bank's return memo dated _______________ records, with the reason "_______________".

3. I call upon you to pay me the cheque amount of Rs. _______________/- within FIFTEEN (15) DAYS of your receipt of this notice.

4. If you do not pay within those fifteen days, you will have committed an offence under Section 138 of the Act, and I shall file a complaint against you before the competent court, without further notice.

_______________
Date: _______________

When to Use This Document

  • ✓A cheque issued to you has been returned unpaid by the bank
  • ✓You need to send the statutory demand within 30 days of the dishonour memo
  • ✓The drawer has not paid despite the cheque being presented
  • ✓You intend to proceed under Section 138 of the Negotiable Instruments Act

Required Information Checklist

Keep this information ready before generating the document.

Date of Notice
Cheque Drawer Full Name
Drawer Address
Payee Full Name
Payee Address
Cheque Number
Cheque Date
Cheque Amount (₹)
Amount in Words
Bank Name
Bank Branch
Purpose of Cheque
Date Presented to Bank
Date of Dishonour Memo
Reason on Bank Memo

Full Sample Draft

LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

Date: {{notice_date}}

To,
{{drawer_name}}
{{drawer_address}}

Subject: Demand notice for the dishonour of Cheque No. {{cheque_no}} dated {{cheque_date}} for Rs. {{cheque_amount}}/-

Dear {{drawer_name}},

I, {{payee_name}}, residing at {{payee_address}}, give you this notice under clause (b) of the proviso to Section 138 of the Negotiable Instruments Act, 1881.

1. You issued Cheque No. {{cheque_no}} dated {{cheque_date}}, drawn on {{bank_name}}, {{bank_branch}}, for Rs. {{cheque_amount}}/- (Rupees {{amount_words}} only) in my favour towards {{payment_reason}}.

2. I presented the cheque on {{presentation_date}}. It was returned unpaid, as the bank's return memo dated {{dishonour_date}} records, with the reason "{{dishonour_reason}}".

3. I call upon you to pay me the cheque amount of Rs. {{cheque_amount}}/- within FIFTEEN (15) DAYS of your receipt of this notice.

4. If you do not pay within those fifteen days, you will have committed an offence under Section 138 of the Act, and I shall file a complaint against you before the competent court, without further notice.

{{payee_name}}
Date: {{notice_date}}
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Frequently Asked Questions

How long do I have to send a cheque bounce notice?▼
Thirty days from the date you receive information of the dishonour from the bank. The drawer then has 15 days from receiving the notice to pay. When that period expires the cause of action arises, and Section 142(1)(b) of the Negotiable Instruments Act requires the complaint to be filed within one month of that date.
What must the notice contain?▼
The cheque number, date and amount, the bank and branch, the date of presentation and the date and reason of dishonour, the legally enforceable debt the cheque was given for, and a demand for payment within 15 days of receipt. Annex the dishonour memo.
Can I also sue civilly for the same amount?▼
Yes. The criminal complaint under Section 138 of the Negotiable Instruments Act and a civil recovery suit are not alternatives — they run in parallel. Where the debt arises on a written contract for a fixed sum, a summary suit under Order XXXVII of the Code of Civil Procedure may be available.
What if I re-presented the cheque and it bounced again?▼
Re-presentation can complicate which dishonour the 30-day notice period runs from. If you intend to use Section 138, treat the first dishonour memo as the trigger and act on it, and take advice before relying on a later bounce to restart the clock.
⚠️
Legal Disclaimer

Send by Registered Post AD within 30 days of receiving the bank's return memo. The drawer then has 15 days from receiving this notice to pay; if they do not, the complaint must be filed within one month after those 15 days end (Section 142(1)(b)).

A notice is a demand with a deadline attached. These are the other situations that call for one.

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