Cheque Bounce - Sec. 138 NI Act: A Complete Guide for Advocates
A legal notice under Section 138 of the Negotiable Instruments Act, 1881 is a statutory prerequisite — not optional — before filing a cheque bounce complaint. Without a valid notice, the magistrate has no jurisdiction to take cognizance of the complaint. The notice creates a final demand on the drawer and triggers the 15-day payment window. Courts across India have dismissed Section 138 complaints where the notice was defective, sent late, or could not be proved to have been received. Treat this document with the same care as a court pleading — errors here can be fatal.
When is this notice required?
The notice must be sent within 30 days of receiving the bank's return memo (the dishonour memo issued when the cheque bounces). This 30-day window is strict — even one day's delay defeats the complaint entirely. Once sent and received, the drawer has 15 days to pay. If payment is not made within this window, the complaint must be filed before the magistrate within 1 month of the 15-day period's expiry.
Key points advocates must know
- The 30-day notice window runs from the date you receive the bank's return memo — not the date of cheque presentation.
- The notice must demand payment of the exact cheque amount. A vague or incomplete demand can be challenged and has been rejected by courts.
- Always send by Speed Post with AD card. Retain the postal receipt and AD card as proof — these become exhibits in court.
- A second dishonour after fresh presentation gives rise to a new cause of action — but requires a fresh legal notice under Section 138.
- If the notice is sent to an old address, courts apply Section 27 of the General Clauses Act: delivery is presumed after a reasonable time from the date of posting.
Frequently Asked Questions
What happens if the drawer ignores the cheque bounce legal notice? ▼
If the drawer does not pay the cheque amount within 15 days of receiving the notice, a criminal complaint can be filed before the magistrate under Section 142, NI Act within 1 month. Conviction under Section 138 carries imprisonment up to 2 years and/or a fine up to twice the cheque amount. Ignoring the notice is therefore the worst course of action for the drawer — it converts a civil debt into a criminal offence.
Can one legal notice cover multiple dishonoured cheques? ▼
Yes — a single notice can cover multiple dishonoured cheques from the same drawer if they belong to the same transaction. For cheques from different transactions, separate notices are safer. When in doubt, issue separate notices — the cost of a notice is far lower than the risk of a complaint being dismissed for covering mixed transactions.
Is a legal notice mandatory before filing a cheque bounce complaint? ▼
Yes. Section 138 of the Negotiable Instruments Act requires the payee to send a written demand notice to the drawer within 30 days of receiving the bank's dishonour memo. The drawer has 15 days to pay after receiving the notice. Only if payment is not made within this period does the right to file a complaint arise under Section 142.
How should a legal notice be served? ▼
Legal notices should be sent by Speed Post with Acknowledgement Due (AD card) — courts presume delivery after a reasonable period from the date of posting under Section 27 of the General Clauses Act. For cheque bounce notices, also send a copy by ordinary post and email (if available). Always retain the postal receipt and AD card.
Is this notice format legally valid? ▼
The notice templates are based on standard legal practice and comply with applicable statutory requirements. However, every case is unique — adapt the notice to the specific facts of your case, verify the applicable law, and have it reviewed by the concerned advocate before dispatch. Legistro and its tools do not constitute legal advice.
Can I edit the generated notice before printing? ▼
The preview updates live as you fill the form. Once printed to PDF, you can further edit using any PDF editor, or download as Word (.rtf) to edit directly. For complex matters, we recommend using the preview as a drafting aid and customising the final notice on your letterhead.