Cheque Bounce Notice Under Section 138 of the NI Act
A Section 138 demand notice drafted and sent through an advocate, within the time the law allows.
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A cheque bounce notice is the written demand sent to the person who issued a cheque that the bank returned unpaid, as required before a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881. It is for payees and businesses who hold a dishonoured cheque issued towards a legally enforceable debt. The law fixes strict periods for sending the notice and for the drawer to pay, so timing is critical. Our team prepares the notice and supporting file, and the notice is drafted and sent by a practising advocate. Whether the case succeeds depends on the facts and the court.
Who provides this service: our legal documentation team, with anything that requires an advocate handled through a practising advocate.
Who Needs Cheque Bounce Notice?
- Businesses and traders holding a cheque returned unpaid by a customer
- Individuals who lent money and received a cheque that was dishonoured
- Landlords, contractors and service providers whose payment cheque has bounced
- Companies whose finance team has received a returned cheque and needs to act within the time limit
- Payees who want to understand their position before deciding whether to file a complaint
Key Benefits
- A notice drafted to meet the requirements of Section 138, with cheque and dishonour details stated precisely.
- Careful tracking of the thirty-day notice window that starts from the date you learn of dishonour.
- Sent through an advocate by trackable modes, so delivery can be proved if the case reaches court.
- Clear guidance on what happens after the notice, including the drawer payment period and complaint timing.
- Review of the underlying debt and the cheque, so weaknesses are seen before the complaint stage.
- A complete document file organised for the advocate to use in the magistrate court complaint.
How It Works
Review of the cheque and return memo
We check the cheque date, validity, signature, amount and the reason in the bank return memo. Some reasons for return fit Section 138 and some do not, so this review decides whether to proceed.
Understanding the underlying debt
We ask what the cheque was issued for and gather the invoice, agreement, ledger or messages showing a legally enforceable debt or liability. This background supports the demand and the later complaint.
Drafting the demand notice
An advocate drafts the notice with the cheque particulars, the date of dishonour, the amount and a clear demand for payment within the statutory period. We confirm the facts with you before it is finalised.
Dispatch and proof of delivery
The notice is sent to the drawer at the correct address by registered post and, where useful, by email. We preserve postal receipts, tracking records and delivery acknowledgements for use as evidence.
Waiting period and follow-up
The drawer gets a fixed period from receipt of the notice to pay. We track this period, keep a record of any reply or part payment and tell you the date from which a complaint can be considered.
Complaint before the magistrate
If payment is not made, a complaint can be filed before the magistrate within the time the law allows. We prepare the file so the advocate can present the complaint without delay.
Documents Required
- Original dishonoured cheque
- Bank cheque return memo stating the reason for dishonour
- Bank statement of the payee showing the presentation of the cheque
- Invoice, agreement, loan record or ledger showing the debt for which the cheque was given
- Messages, emails or letters with the drawer about the payment
- Full name and correct address of the drawer, including any registered office for a company
- Postal receipts and tracking details after the notice is sent
- Identity proof and authority letter of the person acting for a company or firm
Timeline and Fees
Indicative timeline: Indicative range: the notice can usually be drafted and dispatched within a few days of receiving your documents; the periods that follow are set by law, and the court stage depends on the magistrate court.
Professional fee: The fee depends on the number of cheques involved, how much documentation needs to be reviewed, whether the drawer is a person or a company and whether you also want the advocate to file and conduct the complaint. Court fees and postal costs are separate and explained in advance.
What Can Go Wrong if This Is Missed or Done Incorrectly
- A notice sent after the statutory period can undermine the entire Section 138 case.
- A wrong name or address for the drawer can make it difficult to prove that the notice was served.
- A cheque presented after its validity period may not support a Section 138 complaint.
- Delay in filing the complaint after the payment period ends can lead to objections about limitation.
Frequently Asked Questions
What is a cheque bounce notice?
It is a written demand sent to the person who issued a cheque that was returned unpaid by the bank. Under Section 138 of the Negotiable Instruments Act, the payee must send this notice before filing a criminal complaint. It states the cheque details, the dishonour and the amount demanded, and asks for payment within the legal period.
Within how many days must the notice be sent?
The notice must be given within thirty days of the payee receiving information from the bank that the cheque was returned unpaid. Missing this window can seriously weaken the case, so treat it as urgent. Keep the return memo and note the exact date on which you were informed of dishonour.
How much time does the drawer have to pay after the notice?
The drawer has fifteen days from receiving the notice to make the payment of the cheque amount. If payment is made in that period, the offence under Section 138 is not made out. If it is not, the payee can consider filing a complaint before the magistrate, and the timeline for that complaint then starts running.
When can I file a complaint in court after the notice?
A complaint can be filed before the magistrate within one month after the fifteen-day payment period ends without payment. Courts can condone delay in some situations, but that depends on the facts and should not be relied upon. Plan the filing date as soon as the payment period expires.
Does every bounced cheque lead to a Section 138 case?
No. The cheque must have been issued towards a legally enforceable debt or liability and presented within its validity period. Reasons for return, such as insufficient funds or the amount exceeding the arrangement, are commonly covered. Cases involving a stop-payment or a disputed debt need closer legal review before any step is taken.
Do I need an advocate to send a cheque bounce notice?
The law does not say that only an advocate can send it, but in practice the notice is drafted and sent by an advocate so that it meets the requirements precisely and carries weight. Our team prepares the facts and the file, and the notice is issued through a practising advocate.
Official Sources
Rules, forms and fees change. Check the current position on the official portal:
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Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.