Cheque Bounce Legal Notice: The 30-Day Rule Under Section 138 (2026)

A cheque bounce legal notice is the written demand you send after a bank returns your cheque unpaid. Under Section 138 of the Negotiable Instruments Act, 1881, you must send it within 30 days of receiving the dishonour memo. The drawer then gets 15 days to pay, and a complaint follows if they do not.

Key Takeaways

• Send the notice within 30 days of the date shown on the bank's dishonour memo, because that date starts the clock under Section 138.
• The notice must demand the cheque amount and give the drawer 15 days to pay.
• If payment does not come within those 15 days, the complaint must generally be filed within one month after the period ends.
• A notice that comes back refused or unclaimed is typically still treated as served when it was correctly addressed and posted.
• Your date-stamped postal receipt and tracking record are what prove when the notice left, so keep both safely.

What a Cheque Bounce Legal Notice Does

A cheque bounce legal notice is a demand made under Section 138 of the Negotiable Instruments Act, 1881. That section applies when a cheque drawn for a legally enforceable debt is returned unpaid because of insufficient funds, or because the amount goes beyond the arrangement the drawer has with the bank. The notice gives the drawer a final chance to pay before the dispute becomes a criminal complaint.

Banks return cheques through a clearing process regulated by the Reserve Bank of India, and the return reason is recorded on a memo. That memo, not a phone call from your bank manager, is the document the timeline is built on.

Section 139 of the Act also matters here. It allows a presumption that the cheque was issued to discharge a debt or liability, in whole or in part. The drawer can rebut that presumption, but the starting point usually sits with the person holding the cheque.

The notice is not a formality you can skip. It is the step that makes a later complaint possible at all. If the notice is late, addressed to the wrong place or silent on what is demanded, the complaint can fail before the facts are even examined.

The Section 138 Notice Period: Step by Step

The timeline is short and it runs on dates, not on intentions. Work through these steps in order.

1. Collect the dishonour memo. When the bank returns the cheque, it issues a return memo recording the reason for dishonour. Get the original or a clear copy the same day, because every later date is measured from it.
2. Count 30 days from the memo date. The notice must be sent within 30 days of the date you receive the information of dishonour, which in practice is the date shown on the memo. Do not count from the date you wrote the cheque or the date you presented it.
3. Have the demand notice prepared and signed. The notice is usually drafted by an advocate. It should identify the cheque, the debt and the amount demanded, and give the drawer 15 days to pay.
4. Dispatch the notice and keep proof. Post it to the drawer's correct address and retain the counter receipt, the article number and the tracking record. The dispatch date is what you will need to show later.
5. Wait 15 days from receipt. The drawer gets 15 days from the date the notice is received to pay the cheque amount. The period is not counted from the date you posted the notice.
6. File the complaint within one month. If the drawer does not pay, a complaint can be filed within one month after the 15-day period expires, as Section 142 of the Act provides.

Two periods sit inside each other, so a delay at step four or step five can cost you the complaint. If you are close to a deadline, speak to your advocate before you post anything.

What Your Cheque Dishonour Notice Must Contain

The Act does not prescribe a fixed form, but courts have generally taken the view that the notice must tell the drawer plainly what is owed and what follows if it is not paid. A notice that is vague about the amount, or that mixes several unrelated transactions, invites a challenge that has nothing to do with the merits.

The Details a Demand Notice Must State

• The name and address of the drawer, matching the bank record as far as possible.
• The cheque number, date and amount, and the bank and branch it was drawn on.
• The date the cheque was presented and the date it was returned unpaid.
• The reason recorded by the bank on the dishonour memo.
• A clear demand for the cheque amount, with 15 days to pay from receipt of the notice.
• A statement that the notice is issued under Section 138 of the Negotiable Instruments Act, 1881.

Documents to Rely On

Attach or refer to the dishonour memo, a copy of the cheque if you have one, and the invoice, ledger or agreement that shows the debt was real. If the debt arises from a running account, a signed statement of account helps. Your advocate will tell you what to place on record, because the documents you rely on in the notice shape the complaint filed later.

Serving the Notice and Fixing the Date

Sending is not the same as delivering, and for this timeline the sending date does most of the work. This is where the postal record earns its place, because it is created at the counter rather than at the receiving end.

Why the Dispatch Date Is the Anchor

The 30-day window is measured from the dishonour memo to the notice you send, so the date stamped on the postal receipt is the date that matters. Keep the receipt image, the article number and the tracking printout together with a copy of the notice. If the drawer later claims the notice was never sent, this bundle is your first answer.

Addresses to Send It To

Send the notice to the address the drawer gave the bank, and to the current business or residential address if you know it has changed. Where the drawer is a company, send it to the registered office as well as the branch that runs the business. Sending to only one address is a common reason complaints run into trouble.

Refused vs Unclaimed vs Wrong Address: Does Service Still Count?

A cover that comes back does not automatically mean the notice failed. The outcome depends on why it came back and whether you addressed it correctly.

• Refused. The postman records that the addressee refused to take delivery. Courts have generally taken the view that a refusal does not help the drawer, because a person cannot gain from avoiding service.
• Unclaimed. The notice reaches the post office and is returned unclaimed. In most cases this is also treated as service, provided the address was correct and the notice was properly posted.
• Insufficient or wrong address. This one is on you. A notice sent to an address that was never the drawer's creates a real risk that the complaint will not proceed.
• Delivered but no reply. Delivery with no payment is exactly the situation the 15-day period is designed to test.

Whatever the outcome, your dated dispatch record and the returned cover are the evidence. Without them, the argument becomes your word against the drawer's.

Common Mistakes to Avoid

• Letting the 30 days run out. Diarise the memo date the day it arrives, and count the window immediately.
• Sending the notice to the wrong address. Check the bank record, and for a company check the registered office address as well.
• Losing the postal receipt. A tracking screenshot taken months later is weaker than the counter receipt issued on the day of posting.
• Demanding amounts that were never part of the cheque. Keep the demand tied to the cheque amount, and let your advocate advise on interest or costs.
• Relying on a WhatsApp message or email alone. Electronic delivery can be useful, but it is usually sent alongside post rather than instead of it.
• Waiting until the 15 days end to start preparing the complaint. Prepare the papers while the period is still running.

What Happens After the 15-Day Period

If the drawer pays within 15 days of receiving the notice, the matter usually ends there and no complaint is needed. If the drawer does not pay, the holder can file a complaint before the appropriate court. Section 142 of the Act requires the complaint to be made within one month after the 15-day period expires, and it can only be filed by the payee or the holder in due course.

The presumption under Section 139 works in the complainant's favour at the start of the trial, but it does not decide the case. The drawer can lead evidence to show there was no debt or that the cheque was not issued for a legally enforceable liability. This is why the notice, the memo and the dispatch record should line up cleanly from the beginning.

Every cheque dispute turns on its own facts, so treat this as general information and take your advocate's view before you post a notice or file a complaint.

How Chitthiwale Fits In

Chitthiwale is not a law firm and does not draft, review or advise on the content of your notice. What it does is take the dispatch problem off your desk. You upload the PDF your advocate has prepared, add the sender and recipient addresses, and choose whether you need an e-signature. Chitthiwale then prints the pages, packs them and posts them by India Post Speed Post with registered-post features, which you can read about on India Post.

For a Section 138 notice, the record matters as much as the post. Every order gets a Notice ID, the pages carry a QR code that opens a public verification page, and the packet is fingerprinted with SHA-256 at seal, with the dispatch receipt fingerprinted again when it is posted. That gives you a dated, checkable trail of what went out and when.

Most cheque notices run to a few pages and one copy, so the cost stays modest: printing at ₹3 per page, ₹10 packaging, a ₹79 service fee and delivery charges based on zone. You can see the full breakdown on the Chitthiwale pricing page.

Send your cheque bounce legal notice through Chitthiwale by creating an account. If you are new to notices in general, start with the guide on how to send a legal notice in India, then read about proof of service of a legal notice and how registered post compares with Speed Post and courier.

Frequently Asked Questions

How long do I have to send a cheque bounce legal notice?

You must send it within 30 days of receiving the bank's dishonour memo, which is the date shown on the memo. The clock does not run from the date you wrote the cheque, presented it or learned about the problem informally. Missing this window usually closes the option of a Section 138 complaint.

What happens if the drawer does not pay within 15 days?

The 15-day period is the drawer's last chance to pay the cheque amount. If it passes without payment, a complaint can be filed within one month after the period expires. The complaint is filed by the payee or holder in due course before the appropriate court.

Is the notice still valid if the drawer refuses to accept it?

In most cases, yes. If the notice was correctly addressed and properly posted, a refusal to accept delivery is generally treated as service, because a drawer cannot benefit from avoiding the post. Keep the returned cover and the postal record, and let your advocate decide how to place them on record.

Does the notice have to be sent by an advocate?

No. The Act does not require an advocate to send it, and a payee can issue the notice. In practice, most people have it drafted professionally, because the wording and the documents referred to shape the complaint. If you are unsure what to demand, consult an advocate before posting.

Can I send the notice by courier instead of post?

A private courier is not prohibited, but its tracking screenshot is weaker proof than a postal record. Speed Post with registered-post features gives you a counter receipt, an article number and a delivery record from India Post. For a Section 138 notice, that record is what fixes your dispatch date.

What must the demand notice contain?

It should identify the drawer, the cheque and the bank, the date of presentation and return, the reason on the memo, and the cheque amount demanded. It must give the drawer 15 days to pay and state that it is issued under Section 138 of the Negotiable Instruments Act, 1881.