Cheque Bounce Legal Notice (Section 138 NI Act) Format
A Section 138 cheque bounce notice is a written demand you must send within 30 days of the bank return memo, asking the drawer to pay the cheque amount within 15 days. If they fail, you can file a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881.
When to send this notice
Use this notice when a cheque you deposited is dishonoured for reasons such as "insufficient funds" or "payment stopped" and it was issued to discharge a legally enforceable debt or liability. The notice is mandatory: no complaint under Section 138 is maintainable unless the drawer received a demand notice and failed to pay within 15 days.
Statutory basis
Section 138 of the Negotiable Instruments Act, 1881 makes dishonour of a cheque for insufficiency of funds an offence. The demand notice must be sent within 30 days of receiving the bank’s cheque-return memo, and the drawer gets 15 days from receipt to pay. A complaint must then be filed within one month of the expiry of that 15-day period (Section 142). Punishment can extend to two years’ imprisonment or a fine up to twice the cheque amount.
[ON THE LETTERHEAD OF THE ADVOCATE] By Registered Post A/D & Email Date: [DD/MM/YYYY] To, [Full Name of Drawer] [Complete Address] Subject: Legal notice under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheque bearing no. [Cheque Number] dated [DD/MM/YYYY] for Rs. [Amount]. Sir/Madam, Under instructions from and on behalf of my client, [Client Name], resident of [Client Address] (hereinafter "my client"), I serve upon you the following notice: 1. That in discharge of a legally enforceable debt/liability of Rs. [Amount] arising from [state transaction, e.g. goods supplied / loan advanced], you issued cheque no. [Cheque Number] dated [DD/MM/YYYY] drawn on [Bank Name, Branch] in favour of my client. 2. That my client presented the said cheque for encashment through [Payee Bank], which was returned unpaid vide return memo dated [DD/MM/YYYY] with the remark "[e.g. Funds Insufficient]". 3. That the dishonour of the cheque constitutes an offence under Section 138 of the Negotiable Instruments Act, 1881. I therefore call upon you to pay the sum of Rs. [Amount] to my client within fifteen (15) 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, 1881 at your risk, cost, and consequences. A copy of this notice is retained in my office for record and further action. [Advocate Name] [Enrolment No. / Contact]
Replace every [placeholder] with your own details before use.
How to send this legal notice
From draft to proof of delivery and the next legal step.
Collect the dishonoured cheque and the original bank return memo stating the reason for dishonour.
Confirm the return memo date — the notice must be sent within 30 days of receiving it.
Draft the notice on advocate letterhead citing the cheque details, transaction, and Section 138.
Demand payment of the exact cheque amount within 15 days of receipt.
Send it by Registered Post A/D (and email/courier as backup) and preserve the postal receipt and tracking.
If unpaid after 15 days, file a Section 138 complaint before the Magistrate within the next 30 days.
Frequently asked questions
How many days do I have to send a cheque bounce notice?
You must send the demand notice within 30 days of receiving the bank’s cheque-return memo. Missing this window generally defeats a Section 138 complaint for that dishonour, though you may re-present the cheque and start a fresh cycle if it is still valid.
What if the drawer pays after receiving the notice?
If the drawer pays the full cheque amount within 15 days of receiving the notice, the cause of action does not arise and no complaint can be filed. Payment after 15 days does not bar prosecution but is usually considered during proceedings.
Is an advocate mandatory to send a Section 138 notice?
No. You can send the notice yourself, but advocates are commonly used because the notice must precisely state the statutory demand and timeline. Any defect in the notice can be fatal to the later complaint.
Related notice formats
Legal Notice for Recovery of Money (Outstanding Dues) Format
Debt & RecoveryLegal Notice for Recovery of Loan (Friendly Loan) Format
Debt & RecoveryMSME Delayed Payment Legal Notice Format (MSMED Act)
Property & TenancyEviction Notice to Tenant (Notice to Quit) Format
EmploymentLegal Notice for Unpaid Salary / Wages Dues Format
ContractsLegal Notice for Breach of Contract Format
From template to tracked notice
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