Cheque bounce (Section 138)

Cheque bounce notice format under Section 138 of the NI Act

The statutory demand notice under Section 138 of the Negotiable Instruments Act, 1881: the 30-day window, what the notice must demand, how to serve it, and the mistakes that destroy the complaint.

A cheque bounce notice is the statutory demand that must be issued before a complaint under Section 138 of the Negotiable Instruments Act, 1881 can be filed. It must be issued in writing within 30 days of receiving information from the bank about the dishonour, must demand payment of the cheque amount (not interest, damages or costs mixed into the same demand), and must give the drawer 15 days to pay. The cause of action for the complaint arises only when those 15 days expire without payment.

Governed by
  • Section 138, Negotiable Instruments Act, 1881
  • Section 142, Negotiable Instruments Act, 1881 (cognizance and jurisdiction)
Where it is filed
The notice itself is not filed in court. The complaint that follows is filed before the Magistrate within whose jurisdiction the payee's bank branch is situated, under Section 142(2) NI Act.
Who files it
The payee or the holder in due course, through an advocate.
Time limit
Notice within 30 days of receipt of the bank's dishonour memo. The drawer gets 15 days to pay. The complaint must be filed within one month of the expiry of those 15 days.
Languages PleadEasy drafts this in
English, Hindi, Tamil, Malayalam

What a cheque bounce notice must contain

The parts below are the structure of the document in filing order. The operative wording is a matter for the drafting advocate and for the practice of the court concerned.

  1. 1.Advocate's letterhead and reference

    Issued on behalf of the named payee, with the date, which fixes the 30-day compliance.

  2. 2.Parties and transaction

    The payee, the drawer, and the legally enforceable debt or liability that the cheque was issued to discharge. This is the ingredient most often left vague.

  3. 3.Cheque particulars

    Cheque number, date, amount in figures and words, drawee bank and branch, and the account it is drawn on.

  4. 4.Presentation and dishonour

    The date of presentation, the date of the return memo, and the exact reason for return as stated by the bank.

  5. 5.Demand

    An unambiguous demand for payment of the cheque amount within 15 days of receipt of the notice.

  6. 6.Consequence

    A statement that failure to pay within 15 days will result in prosecution under Section 138 of the NI Act, and civil recovery.

  7. 7.Service

    Sent to the drawer's correct address by registered post with acknowledgement due and by courier or email, with proof of dispatch retained.

Mistakes that get this document returned

  • Issuing the notice after 30 days from the bank memo, which is fatal to the complaint on that cheque.
  • Demanding interest, legal charges and damages as a consolidated sum instead of demanding the cheque amount clearly.
  • Not pleading the legally enforceable debt or liability, leaving the presumption under Section 139 unanchored.
  • Sending to an incorrect or outdated address and losing the benefit of deemed service.
  • Not retaining the original dishonour memo and the postal receipt with tracking record.

Frequently asked questions

What is the time limit for a cheque bounce notice?

The notice must be issued within 30 days of receiving information from the bank about the dishonour of the cheque, under the proviso to Section 138 of the NI Act.

What if the drawer refuses to accept the notice?

Refusal to accept a notice correctly addressed and sent by registered post is treated as good service, and the 15-day period runs from the date of refusal.

Can a cheque be presented again after it bounces?

Yes. A cheque may be presented again within its validity, and a fresh cause of action arises on each dishonour, provided no notice has already been issued and the 15-day period has not been allowed to lapse on that occasion.

Where is a cheque bounce case filed?

Under Section 142(2) of the NI Act, before the court within whose jurisdiction the branch of the bank where the payee maintains the account is situated.

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Last reviewed 30 August 2026. This guide is general information about court procedure for advocates. It is not legal advice and does not replace the rules of practice of the court you are filing in.