A cheque bounce legal notice is the written demand the payee must send to the drawer under Section 138 of the Negotiable Instruments Act within 30 days of receiving the bank's return memo. It must give the cheque number, date, amount and bank, the date and reason of dishonour, and a clear demand to pay the cheque amount within 15 days of receiving the notice.
The notice format
Copy this format, replace every item in square brackets, and delete the bracketed options that do not apply. It is written to be sent by an advocate, which is the usual and safest practice, but a payee may also send it in its own name.
LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
From:
[ADVOCATE NAME], Advocate
[OFFICE ADDRESS]
[PHONE] | [EMAIL]
Date: [DATE]
BY REGISTERED POST AD / SPEED POST AND EMAIL
To:
1. [DRAWER NAME], [proprietor / through its Managing Director]
[FULL REGISTERED ADDRESS WITH PIN CODE]
2. [NAME OF DIRECTOR / PARTNER IN CHARGE OF THE BUSINESS]
[ADDRESS]
(include item 2 only where the drawer is a company or firm)
Subject: Notice for dishonour of cheque no. [CHEQUE NO.] dated [CHEQUE DATE] for Rs [AMOUNT IN FIGURES] drawn on [DRAWEE BANK, BRANCH]
Sir/Madam,
Under instructions from and on behalf of my client, [PAYEE NAME], having its office at [PAYEE ADDRESS] ("my client"), I serve you with the following notice:
1. My client supplied [DESCRIPTION OF GOODS / SERVICES] to you against [INVOICE NO(S). AND DATE(S) / PO NO.]. A sum of Rs [AMOUNT] is due and payable by you to my client towards the same.
2. Towards discharge of this legally enforceable debt, you issued cheque no. [CHEQUE NO.] dated [CHEQUE DATE] for Rs [AMOUNT IN FIGURES] (Rupees [AMOUNT IN WORDS] only), drawn on [DRAWEE BANK, BRANCH], in favour of my client.
3. My client presented the cheque for collection through its bankers, [PAYEE BANK, BRANCH], on [DATE OF PRESENTATION].
4. The cheque was returned unpaid with the remark "[REASON SHOWN ON RETURN MEMO]" vide return memo dated [MEMO DATE], which my client received on [DATE MEMO RECEIVED].
5. You have thereby committed an offence punishable under Section 138 of the Negotiable Instruments Act, 1881. [Where the drawer is a company or firm: Under Section 141 of the Act, every person who was in charge of and responsible for the conduct of its business at the time is also liable.]
6. I therefore call upon you to pay the said cheque amount of Rs [AMOUNT IN FIGURES] to my client within 15 (fifteen) days of receipt of this notice, by demand draft in favour of [PAYEE NAME] or by bank transfer to account no. [ACCOUNT NO.], IFSC [IFSC], [BANK, BRANCH].
7. If you fail to pay the cheque amount within 15 days of receipt of this notice, my client will file a criminal complaint against you under Sections 138 and 142 of the Act before the competent court, and may also take civil proceedings for the debt with interest and costs, entirely at your risk as to costs and consequences.
8. [Optional: Separately, and without affecting the demand for the cheque amount above, my client reserves its right to claim interest at [RATE]% per annum and the cost of this notice.]
A copy of this notice is retained in my office for record and further action.
[SIGNATURE]
[ADVOCATE NAME], Advocate
Enrolment No. [BAR COUNCIL ENROLMENT NO.]
For and on behalf of [PAYEE NAME]
Enclosures: Copy of cheque no. [CHEQUE NO.]; copy of return memo dated [MEMO DATE]How to fill it
- Take the drawer's exact name and address from the cheque, invoice and GST records. For a company, use the registered office; a GSTIN check on FundRaksha Trust shows the legal name and registered address.
- Copy the cheque number, date, amount and drawee bank exactly as printed. Write the amount in figures and words.
- Take the return reason word for word from the return memo, and note the date you actually received the memo. Your 30 days run from that date.
- Name the transaction that created the debt (invoice numbers, PO, ledger balance). The cheque must be for a legally enforceable debt.
- Demand only the cheque amount in paragraph 6. Keep interest and costs, if you mention them at all, in a separate paragraph.
- Give a payment route (DD or bank account) so the drawer can comply, and attach copies of the cheque and memo.
The cheque bounce timeline calculator works out the notice deadline, the 15-day payment date and the complaint window from your memo date.
Common mistakes
- Sending the notice on day 31 or later. A late notice cannot be cured; the cheque has to be re-presented within its validity to start a fresh cycle.
- Demanding a lump sum that mixes the cheque amount with interest or other invoices. Courts have held the demand for the cheque amount must be clear and distinct.
- Addressing only the company and not the directors in charge, which weakens the case against the individuals.
- Sending to an old or branch address with no proof of delivery.
- Giving "15 days from the date of this notice" instead of 15 days from receipt.
How to send it and what happens next
Send by registered post AD or speed post with tracking to every addressee, and also by email or WhatsApp where you have them. Keep the postal receipts, tracking printouts and the AD card or returned envelope: refusal or "unclaimed" is usually treated as deemed service at a correct address.
Count 15 days from the date the notice is delivered. If the drawer pays, the matter ends. If not, the cause of action arises on day 16 and you have one month to file the complaint before the Judicial Magistrate First Class or Metropolitan Magistrate where your bank branch is located. See the Section 138 complaint format for the next document.
If you would rather not draft it yourself, FundRaksha Legal has an advocate send the notice within 24 hours of receiving the cheque and memo, with a 30% success fee only on recovery. A free consultation will confirm your dates first.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.