Section 138, Negotiable Instruments Act 1881
The cheque bounce notice
A dishonoured cheque only becomes an offence if you follow a sequence of deadlines exactly. Thirty days to send the demand. Fifteen days for the drawer to pay. One month to file. Miss any of them and the case does not get weaker — it does not exist.
Last reviewed 10 November 2026 · General information on Indian law, not legal advice. A time-barred notice cannot be cured — take advice before relying on this.
The rule, in short
Send a written demand for the cheque amount within 30 daysof receiving the bank's return memo. The drawer then has 15 days from receiving it to pay. If they do not, the offence under Section 138 is complete and you have one month to file a complaint before the Magistrate where your own bank branch sits.
The sequence
Five steps, each with its own clock
Present the cheque in time
A cheque is valid for three months from the date written on it. Present it inside that window — a stale cheque cannot found a Section 138 case at all.
Collect the return memo
The bank issues a cheque return memo stating the reason. Keep the original: it fixes the date the 30-day clock starts, and the reason must fall within Section 138.
Send the demand notice
Issue a written demand for the cheque amount within 30 days of receiving the return memo. Send it by registered post with acknowledgement due, and keep the receipt.
Wait out the drawer's window
The drawer has 15 days from receiving the notice to pay. If they pay inside it, no offence is made out. Filing before day 16 is premature and gets dismissed.
File the complaint
If the 15 days expire unpaid, the cause of action arises and the complaint must be filed within one month of that expiry before the competent Magistrate.
Contents
What the notice must state
- The drawer's name and full address, and yours as payee
- Cheque number, date, amount, and the drawee bank and branch
- The date the cheque was presented and the date it was returned
- The exact reason for dishonour, quoted from the bank's return memo
- A statement that the cheque was issued towards a legally enforceable debt or liability, and what that debt is
- An unambiguous demand for the cheque amount — not the amount plus interest or costs
- That payment must be made within 15 days of receipt of the notice
- That a complaint under Section 138 will follow if payment is not made
Where cases fail
Six avoidable mistakes
Demanding more than the cheque amount
A notice demanding the cheque amount plus interest, damages or legal costs as one consolidated sum has been held defective. Demand the cheque amount; claim the rest separately.
Sending it after 30 days
The 30 days run from when you receive the return memo, not from when you noticed. There is no condonation for a late notice — the cause of action simply never arises.
Filing before the 15 days expire
The offence is complete only when the drawer fails to pay within 15 days of receiving the notice. A complaint filed on day 10 is premature.
Losing the acknowledgement
You must prove service. Registered post with acknowledgement due, plus the postal receipt and tracking, is the standard. Refusal to accept counts as deemed service.
No legally enforceable debt
Section 138 protects a cheque given for a debt or liability that is legally recoverable. A cheque for a time-barred debt, a gift, or security against a loan not yet due will not sustain the case.
Wrong court
Jurisdiction lies where the payee's bank branch is situated, under Section 142(2) as amended in 2015 — not where the drawer lives or where the cheque was handed over.
On default
What the drawer faces
2 years
imprisonment
Maximum term under Section 138, or a fine, or both.
2×
the cheque amount
The maximum fine the court may impose.
20%
interim compensation
The court may order this under Section 143A during trial, and an appellate court a 20% deposit under Section 148.
Questions people actually search
Cheque bounce, answered
What is the time limit for sending a cheque bounce notice?
Thirty days from the date you receive the bank's cheque return memo. This is a hard limit — there is no provision to condone delay, and a notice sent on day 31 means the cause of action never arises for that presentation. You can, however, present the same cheque again within its three-month validity and start a fresh cycle from the new return memo.
How long does the drawer get to pay after the notice?
Fifteen days from receiving the notice, not from the date you sent it. If the drawer pays in full within that window no offence is made out. The offence under Section 138 is complete only on failure to pay within those 15 days, and only then does the one-month period for filing the complaint begin.
What must a cheque bounce notice contain?
The cheque particulars (number, date, amount, bank and branch), the presentation and return dates, the reason for dishonour as stated in the return memo, a statement that the cheque was issued for a legally enforceable debt and what that debt is, a clear demand for the cheque amount, the 15-day payment window, and notice that a Section 138 complaint will follow. Demanding the cheque amount plus interest or costs as a single figure risks the notice being held defective.
Can I send a cheque bounce notice by email or WhatsApp?
Service must be provable. Registered post with acknowledgement due to the drawer's correct address remains the accepted method, and courts treat refusal to accept as deemed service. Email or courier can supplement it but should not replace it — if service is challenged, the postal acknowledgement is what carries the day.
Which court hears a cheque bounce case?
The Magistrate having jurisdiction over the place where the payee's bank branch is located, under Section 142(2) of the Negotiable Instruments Act as amended in 2015. This replaced the earlier position that allowed filing at several places, and it generally favours the payee.
What is the punishment for cheque bounce?
Imprisonment up to two years, or a fine up to twice the cheque amount, or both, under Section 138. The court may also order interim compensation of up to 20% of the cheque amount under Section 143A while the trial is pending, and an appellate court may require a 20% deposit under Section 148.
Can the cheque be presented again after it bounces?
Yes, as long as it is still within three months of its date. Each presentation and return gives a fresh return memo and a fresh 30-day notice window. What you cannot do is send a second notice on the same return memo to revive a deadline you have already missed.
Is a cheque bounce a civil or criminal matter?
Section 138 creates a criminal offence, tried summarily by a Magistrate, but it is compoundable — the parties may settle at any stage under Section 147. A separate civil suit for recovery of the debt can run alongside; the criminal complaint punishes the dishonour, it does not by itself recover the money.
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