Cheque Bounce Notice Format (Section 138 NI Act)

Q: What is a cheque bounce notice under Section 138?

When a cheque is dishonoured for insufficient funds or similar reasons, Section 138 of the Negotiable Instruments Act requires the payee to send a written demand notice to the drawer, demanding payment of the cheque amount. This notice is a mandatory pre-condition to filing a cheque-bounce complaint.

Q: Within how many days must the Section 138 notice be sent?

The demand notice must be sent within 30 days of receiving the bank's 'cheque returned' memo (the dishonour intimation).

Q: What details must the cheque bounce notice contain?

The notice should state the cheque number, date, amount, the bank, the date of dishonour and the reason returned, the underlying liability, a demand to pay the cheque amount within 15 days, and a warning of prosecution under Section 138 if unpaid.

When a cheque bounces, a Section 138 demand notice is a mandatory first step before you can prosecute. Miss the timeline and the complaint fails. Below is the statutory timeline, exactly what the notice must say, and a ready-to-use template.

What is a Section 138 cheque bounce notice?

Under Section 138 of the Negotiable Instruments Act, 1881, when a cheque is dishonoured (for insufficient funds, "exceeds arrangement", account closed, or similar), the payee must send the drawer a written demand notice requiring payment of the cheque amount. This notice is a legal pre-condition — a complaint cannot be filed without it.

The statutory timeline (do not miss these)

30 days — send the demand notice within 30 days of receiving the bank's cheque-return memo.
15 days — the drawer has 15 days from receiving the notice to pay.
30 days — if unpaid, file the complaint within 30 days after the 15-day period ends, before the Magistrate having jurisdiction.

What the notice must contain

Cheque number, date, and amount, and the drawee bank.
Date of presentation and date/reason of dishonour (from the return memo).
The underlying legally enforceable debt or liability.
A clear demand to pay the cheque amount within 15 days.
A warning of prosecution under Section 138 if payment is not made.

Cheque bounce notice template

[Advocate's Letterhead] Ref: ____________ Date: ____________ By RPAD & Email To, ____________________ (Drawer's name) ____________________ (Address) Subject: Demand notice under Section 138 of the Negotiable Instruments Act, 1881 Sir/Madam, Under instructions from my client, ____________________, I address you as under: 1. That you issued cheque No. ______ dated __________ for Rs. __________ drawn on ____________ Bank, ____________ branch, towards ____________ [legally enforceable liability]. 2. That the said cheque, on presentation, was returned dishonoured vide the bank's memo dated __________ for the reason "____________". 3. That the said dishonour attracts the provisions of Section 138 of the NI Act. I hereby call upon you to pay the cheque amount of Rs. __________ to my client within 15 (fifteen) days of receipt of this notice, failing which my client shall be constrained to initiate criminal proceedings under Section 138 of the Negotiable Instruments Act, along with such other remedies as are available, entirely at your risk as to costs and consequences. __________________________ (Advocate) Enrolment No.: __________

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Frequently asked questions

What is a cheque bounce notice under Section 138?

A mandatory written demand the payee sends to the drawer after a cheque is dishonoured, demanding payment of the cheque amount — a pre-condition to filing a Section 138 complaint.

Within how many days must the Section 138 notice be sent?

Within 30 days of receiving the bank's cheque-return memo.

What is the timeline to file a cheque bounce complaint?

The drawer gets 15 days from receiving the notice to pay. If unpaid, the complaint must be filed within the next 30 days before the Magistrate.

What details must the cheque bounce notice contain?

Cheque number, date, amount, bank, date and reason of dishonour, the underlying liability, a 15-day demand to pay, and a warning of prosecution under Section 138.