Last updated: 18 October 2026
Short answer: If a cheque given to you for a debt bounces, send a written demand notice to the drawer within 30 days of receiving the bank’s return memo. The drawer then has 15 days from receiving the notice to pay. If they do not pay, you can file a criminal complaint under section 138 of the Negotiable Instruments Act, 1881 within one month after those 15 days end, in the court where your bank branch is located. Miss any of these steps and the complaint can fail, so the notice is the most important document in the whole case.
The section 138 timeline at a glance
| Step | Time limit | Provision |
|---|---|---|
| Present the cheque to your bank | Within its validity: three months from the date on the cheque, or any shorter period printed on it | Section 138, proviso (a) |
| Send the demand notice | Within 30 days of receiving information from the bank that the cheque was returned unpaid | Section 138, proviso (b) |
| Drawer’s time to pay | 15 days from the date the drawer receives the notice | Section 138, proviso (c) |
| Cause of action arises | The day after the 15 days expire without payment | Section 138, proviso (c) |
| File the complaint | Within one month of the cause of action; later only if the court condones the delay for sufficient cause | Section 142(1)(b) |
Worked example: your bank gives you the return memo on 1 March. You must send the notice by 31 March. Suppose you post it on 3 March and the drawer receives it on 5 March. The 15 days end on 20 March and the cause of action arises on 21 March. File your complaint by 20 April to be safe. Never file before the 15 days are over: a premature complaint is not maintainable.
When does section 138 apply?
All of these conditions must be met:
- The cheque was drawn on an account maintained by the drawer and given to discharge a legally enforceable debt or other liability, in whole or in part. A cheque given as a gift or a donation does not qualify.
- It was presented within its validity period.
- The bank returned it unpaid because funds were insufficient or the amount exceeded the arrangement. Courts have held that returns marked “account closed”, “payment stopped by drawer” or “signature mismatch” can also attract section 138 in suitable cases.
- You sent a valid written demand within 30 days of the return memo.
- The drawer did not pay the cheque amount within 15 days of receiving the notice.
Once the drawer admits signing and issuing the cheque, the court presumes under section 139 that it was given for a debt or liability. The drawer can rebut this presumption, for example by showing the cheque was given as security for a debt that never became due, but the burden is on the drawer. In Sanjabij Tari v. Kishore S. Borcar (Supreme Court, September 2025) the Court also held that a debt arising from a cash loan of more than Rs 20,000 can still be a legally enforceable debt for section 138, even if the cash transaction breached income tax rules.
What the demand notice must contain
- Exact cheque details: number, date, amount, drawee bank and branch, date of presentation, date of return and the reason in the return memo.
- A demand for the cheque amount. In Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul, 2025 INSC 1133 (decided 19 September 2025), the Supreme Court held a notice invalid because it demanded an amount different from the cheque amount, and refused to treat it as a typing slip. If you also want interest or costs, show them separately so the cheque amount stands out clearly.
- The 15 day period for payment, counted from receipt of the notice.
- The underlying debt: loan, price of goods, rent, settlement amount and so on, with dates.
- For a company or firm: address the notice to the company and also to the directors or partners who were in charge of and responsible for its business, because section 141 makes them liable too.
Free sample: short cheque dishonour notice
NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
Date: [date]
By Speed Post with proof of delivery and by e-mail
To,
[Name of drawer]
[Address with PIN code]
1. Towards discharge of your liability of Rs [amount] for [loan given on [date] / goods supplied under invoice no. [ ] / other], you issued cheque no. [ ] dated [ ] for Rs [amount], drawn on [bank, branch], in my favour.
2. I presented the cheque through my account with [bank, branch] on [date]. It was returned unpaid on [date] with the remark “[reason as in memo]”. I received the return memo on [date].
3. I hereby demand that you pay the said cheque amount of Rs [amount] within 15 days of receipt of this notice, by [bank transfer to account no. [ ], IFSC [ ] / demand draft in my favour].
4. If you fail to pay the cheque amount within 15 days of receipt of this notice, I shall file a complaint against you under sections 138 and 142 of the Negotiable Instruments Act, 1881, besides other proceedings available in law, at your risk as to costs and consequences.
[Signature]
[Name, address, phone, e-mail]
Keep this notice limited to the cheque amount. If you have other claims against the drawer, raise them in a separate letter.
Need the complete, editable set? The Lexfolio Legal Notice Set includes a full section 138 notice for individuals and companies, a reply format for the drawer, a money recovery notice and Hindi versions, with a plain language guide to the timeline and service rules.
How to send it and prove delivery
Send the notice by Speed Post with proof of delivery (India Post merged its registered post service into Speed Post from 1 September 2025), and also by e-mail or WhatsApp as a signed PDF if you have the drawer’s address or number. Keep the booking receipt, tracking report and screenshots. A notice correctly addressed and returned “refused” or “unclaimed” is generally treated as served. In C.C. Alavi Haji v. Palapetty Muhammed, (2007) 6 SCC 555, the Supreme Court added that a drawer who says the notice never arrived can pay within 15 days of receiving the court summons; if he does not, the plea of non-service will not help him.
Filing the complaint
Which court?
After the 2015 amendment, section 142(2) fixes the place. If you deposited the cheque in your bank account for collection, file in the court within whose limits your bank branch where you hold the account is situated. The complaint is tried by a Judicial Magistrate of the first class or a Metropolitan Magistrate.
Documents to attach
| Document | Purpose |
|---|---|
| Original cheque | Primary evidence |
| Original return memo | Proves dishonour and the date |
| Copy of the demand notice | Proves the statutory demand |
| Postal receipt, tracking report, proof of delivery, e-mail or WhatsApp screenshots | Proves dispatch and service |
| Documents showing the debt (loan transfer, invoice, agreement, ledger) | Supports the legally enforceable liability |
| Affidavit of the complainant | Evidence in support |
Practice changes after Sanjabij Tari (September 2025)
The Supreme Court issued directions to speed up cheque bounce cases. As reported, they include: service of summons by the complainant personally (dasti) in addition to the usual modes, with an affidavit of service; online payment options (QR code or UPI link) mentioned in the summons, so the accused can pay the cheque amount at the start and close the case; a synopsis in a prescribed format at the front of every complaint; and a graded scale of costs for compounding.
| Stage at which the case is compounded | Costs in addition to the cheque amount |
|---|---|
| Before the accused’s defence evidence is recorded | No costs |
| After defence evidence, before the trial court’s judgment | 5 per cent of the cheque amount |
| Before the Sessions Court or the High Court in revision or appeal | 7.5 per cent |
| Before the Supreme Court | 10 per cent |
The practical message for both sides: settling early is cheapest.
What the drawer faces
- Punishment: imprisonment up to two years, or fine up to twice the cheque amount, or both (section 138).
- Interim compensation: the trial court may order up to 20 per cent of the cheque amount during the trial (section 143A).
- Deposit in appeal: an appellate court may require a deposit of at least 20 per cent of the fine or compensation (section 148).
- Settlement: the offence is compoundable (section 147).
If you have received a section 138 notice, do not ignore it. If the debt is genuine, paying within the 15 days ends the matter. If you dispute it (for example, the cheque was a blank security cheque misused), send a clear written reply within the same period and keep the proof. The Lexfolio set includes a reply format.
Common mistakes that defeat a complaint
- Sending the notice after 30 days from the return memo.
- Demanding an amount different from the cheque amount.
- Filing the complaint before the 15 day period expires, or long after one month without a delay application.
- Not naming the company and the directors in charge where the drawer is a company.
- Losing the original cheque or return memo.
- Filing in the wrong court instead of where your own bank branch is.
Draft it right the first time. The Legal Notice Set gives you section 138 notice and reply formats with clause by clause guidance, a limitation table and a service checklist, in editable Word and PDF.
For ordinary unpaid dues where no cheque is involved, see our guide to the legal notice for recovery of money. If you need the BNS equivalents of old IPC sections such as 420 or 406, which are sometimes added to cheque disputes, see the IPC to BNS section converter.
Frequently asked questions
What is the time limit to send a cheque bounce notice?
Thirty days from the date you receive information from the bank that the cheque was returned unpaid.
Can a cheque bounce notice be sent on WhatsApp?
Several High Courts have accepted notices sent by e-mail or WhatsApp where delivery can be shown. Because practice varies, send the notice by Speed Post as well.
Can I present the cheque again after it bounces?
Yes, within its validity period. A fresh notice can then be sent within 30 days of the later dishonour, and the complaint can be based on that later notice.
Is a cheque bounce case criminal or civil?
Section 138 is a criminal offence, but it is compoundable and the courts encourage settlement. You can also file a civil suit for recovery of the debt alongside it.
Does a security cheque attract section 138?
It can, if on the date of presentation a legally enforceable debt was actually due. If no debt had become payable, the drawer may have a defence.
Where do I file the case if I live in a different city from the drawer?
In the court within whose limits your bank branch, where you maintain the account into which you deposited the cheque, is situated.
*This article is general information, not legal advice.*
