After a cheque bounces, send a written demand notice within 30 days of receiving the bank return memo. The drawer then has 15 days to pay. If they do not, file the Section 138 complaint within one month after that. The free consultation confirms your dates, checks the cheque and memo, and, if you proceed, has an advocate send the notice within 24 hours.
The Section 138 timeline, from your return memo
- Day 0: you receive the bank's cheque return memo (reason: insufficient funds, account closed, payment stopped, or similar).
- By day 30: a written demand notice must be sent to the drawer, demanding the cheque amount. FundRaksha sends it as an e-notice and by registered post with proof.
- 15 days after the drawer receives the notice: the drawer must pay. If they pay, the matter ends.
- Within 1 month after those 15 days: the complaint must be filed before the magistrate with jurisdiction.
Use the cheque bounce timeline calculator with your memo date to see your exact deadlines. If you are near day 30, call +91 89777 89200 now rather than reading further.
What the expert checks on the call
- The cheque: date, amount, payee name, signature, and that it was presented within its validity
- The return memo: date received and reason code
- The underlying debt: invoice or agreement the cheque was issued against (the cheque must be for a legally enforceable debt)
- The drawer: individual, proprietor or company; for a company, the signatory and directors in charge
- Whether a previous notice was already sent, and when
Most of these can be photographed and sent on WhatsApp before the call.
Why Section 138 is so effective, and its limits
The criminal consequences (up to two years' imprisonment, a fine up to twice the cheque amount) bring most drawers to the table at the notice stage. The complaint also allows the court to order interim compensation. Its limits: it covers only the cheque amount, not your full ledger, and the deadlines cannot be extended except by the court for sufficient cause. For the balance beyond the cheque, the advocate runs a civil claim or MSME Samadhaan in parallel.
If you proceed
If you decide to go ahead, a dedicated advocate is assigned within 24 hours of your complete documents and the legal notice goes out as an e-notice, followed by registered post. For cheque matters the notice is treated as urgent and drafted the same day. If the drawer does not pay within 15 days, the complaint is filed before the magistrate court with jurisdiction, for example the Metropolitan Magistrate courts in Mumbai, Delhi or Hyderabad. Nothing is charged upfront. If you proceed, FundRaksha Legal charges 30% only on the amount actually recovered; if nothing is recovered there is no success fee. Court fees, where a matter is filed, are borne by you and told to you in advance.
Cheque-based trades such as textiles and diamonds see this often; see those pages for context.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.