A cheque bounce notice is the demand in writing that the payee or holder must send to the drawer within 30 days of receiving the bank's return memo, demanding payment of the cheque amount. It must identify the cheque, the bank and the reason for return, state that the cheque was issued for a debt, and demand the amount within 15 days. If the drawer does not pay within 15 days of receipt, the offence under Section 138 is complete.
How a cheque bounce notice works in India
The notice is addressed to the drawer (and, for a company cheque, to the company and the directors in charge under Section 141). It recites the transaction, the invoices, the cheque details (number, date, amount, bank), the date of presentation and the return memo with its reason, and demands payment of the cheque amount within 15 days of receipt, failing which a complaint will be filed. It is signed by the payee or its advocate. Proof of dispatch and delivery is kept because the complaint must show the notice was served.
- Send to the address on the cheque, invoice or company master data.
- Send by at least two modes: registered post AD and email or WhatsApp with delivery record.
- Keep the envelope if it comes back "refused" or "left": refusal is service.
Why it matters for getting paid
The notice itself recovers a large share of bounced cheques, because the drawer now faces a criminal complaint with a fixed date. A badly drafted notice (wrong amount, wrong addressee, late dispatch) can get the complaint dismissed years later. Read the entries on the return memo, Section 141 and registered post AD.
How FundRaksha uses it
FundRaksha drafts and dispatches the Section 138 notice within 24 hours of receiving the cheque, memo and invoices, with the computation and a copy of the memo attached. The e-notice goes the same day, the registered post follows with AD tracking. About 60% of all FundRaksha cases settle at the notice stage; the fee is 30% of recovery and nothing upfront.
Worked example (hypothetical)
A Jaipur marble supplier holds a ₹3,00,000 cheque returned on 1 September with the memo received the same day. The notice deadline is 1 October. The advocate sends the notice on 4 September by registered post AD and email. The AD card shows delivery on 7 September. The 15-day period ends 22 September. Nothing is paid, so the complaint can be filed from 23 September to 22 October. On 25 September the drawer calls and offers ₹3,00,000 in two instalments by 15 October; the supplier accepts in writing, with the complaint to be filed if any instalment fails.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.