If your cheque has bounced in India, the law is on your side. Under Section 138 of the Negotiable Instruments Act, 1881, a dishonoured cheque is a criminal offence — and you have 30 days from the bank dishonour memo to send a legal notice. Generate a lawyer-reviewed cheque bounce notice in 5 minutes.
A cheque bounce (also called cheque dishonour) occurs when your bank returns a cheque unpaid. Common reasons include insufficient funds in the account, a closed account, a signature mismatch, or a stop-payment instruction.
In India, a bounced cheque is not just a civil matter — it is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881. The person who issued the cheque (the drawer) can face imprisonment of up to 2 years, a fine up to twice the cheque amount, or both.
The cheque bounce notice is the mandatory first step. Without it, you cannot file a criminal complaint — no matter how clear-cut the case.
Section 138 of the Negotiable Instruments Act, 1881 says: if someone gives you a cheque for a legally enforceable debt or liability, and the cheque is returned unpaid by the bank, that person has committed a punishable offence.
To exercise your rights under Section 138, you must follow this exact sequence:
1. Receive the dishonour memo from your bank.
2. Send the cheque bounce notice to the drawer within 30 days of the bank memo.
3. Give the drawer 15 days from receipt of notice to make full payment.
4. If they fail to pay within 15 days, file a criminal complaint before the Magistrate within 30 days of the expiry of that window.
Missing any of these steps can invalidate your case.
The most critical rule in cheque bounce cases in India: you must send the legal notice within 30 days of receiving your bank's dishonour memo. This is a hard statutory deadline under Section 138.
If you miss this 30-day window, you permanently lose your right to file a criminal complaint under Section 138. Courts do not grant extensions for this deadline.
As soon as your bank returns the cheque with a dishonour memo, act immediately.
Section 138 of the Negotiable Instruments Act, 1881 makes cheque dishonour a criminal offence punishable with imprisonment up to 2 years, or a fine up to twice the cheque amount, or both. Section 141 extends liability to companies and their directors. The notice is a mandatory first step — without a valid Section 138 legal notice, no criminal complaint can be filed.
Important deadline: You must send this notice within 30 days of receiving the bank's dishonour memo. Missing this window means losing your right to criminal action under Section 138 permanently.
Common scenarios our users face, with specific guidance.
My business partner gave me a company cheque that bounced — the company says it has no funds
Section 141 of the NI Act extends liability to every person who was in charge of the company and responsible for its conduct at the time of the offence. This means you can send the Section 138 notice to both the company and the individual director/partner personally. The company's insolvency does not extinguish your right to pursue the individuals.
The cheque was given as a security deposit — not for a debt — and the person now says Section 138 doesn't apply
This is a common defence, but courts have repeatedly held that Section 138 applies to any cheque given in discharge of any 'legally enforceable debt or other liability'. If the cheque was given as security for an obligation you were owed, and that obligation was not fulfilled, Section 138 applies. Send the notice — let the court evaluate the defence.
Multiple cheques from the same person bounced — do I need to send separate notices for each?
Yes — under Section 138, each dishonoured cheque is a separate cause of action and requires its own notice. However, you can address all notices in a single document (one notice letter covering all cheques), as long as each cheque's details are specifically mentioned. File separate complaints for each if the drawer fails to pay.
The person paid part of the amount after the cheque bounced but is refusing to pay the rest
A partial payment does not extinguish the cause of action under Section 138 for the remaining amount. Send the notice demanding the balance. Courts have held that accepting partial payment while reserving rights for the remainder is valid. Make sure to clearly state in all communications that you reserve your legal rights under Section 138.
The cheque bounced due to 'stop payment' instructions — does that still count as an offence?
Yes — the Supreme Court has held that a 'stop payment' instruction by the drawer amounts to dishonour under Section 138. The drawer cannot escape liability by preemptively stopping the cheque. The standard notice and complaint procedure applies.
Everything you need to know before taking action.
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