Generate a statutory demand notice under Section 138 of the Negotiable Instruments Act for a bounced cheque.
A cheque bounce notice, formally a statutory demand notice under Section 138 of the Negotiable Instruments Act, 1881, is a mandatory legal notice that a cheque holder (payee) must send to the cheque issuer (drawer) after a cheque is dishonoured by the bank — most commonly due to insufficient funds. Section 138 makes cheque dishonour a criminal offence in India, but before a criminal complaint can be filed in court, the law requires the payee to first give the drawer a formal opportunity to pay by sending this notice. Skipping this notice, or sending it incorrectly, is one of the most common reasons cheque bounce cases get dismissed on technical grounds — so getting the notice right, and sent within the correct timeframe, is essential.
Section 138 proceedings follow a strict, legally mandated sequence, and missing any deadline in this sequence can permanently bar you from prosecuting the case. First, the cheque must be presented for payment within its validity period (currently 3 months from the date on the cheque, as per RBI guidelines). Second, once the cheque is dishonoured, the payee must issue this demand notice to the drawer within 30 days of receiving the bank's "cheque return memo." Third, the drawer then has 15 days from receipt of the notice to make payment. Only if the drawer fails to pay within those 15 days does a cause of action arise, and the payee must then file a criminal complaint in the appropriate court within one month of the expiry of that 15-day period.
Enter the payee's and drawer's names and addresses, the cheque number, amount, cheque date, the drawer's bank and branch, the date and stated reason on the bank's return memo, and the purpose for which the cheque was originally issued. The tool assembles a properly structured Section 138 demand notice citing the specific cheque details, the dishonour, the statutory basis for criminal liability, and a clear 15-day payment demand. Everything is generated locally in your browser.
For a Section 138 case to succeed, several elements typically need to be established: that a valid cheque was issued by the drawer for the discharge of a legally enforceable debt or liability (not, for example, as a gift or security without an underlying debt); that the cheque was presented within its validity period; that it was dishonoured due to insufficient funds or a similar reason attributable to the drawer; that a valid demand notice was sent within 30 days of the dishonour; and that the drawer failed to pay within 15 days of receiving that notice. The Negotiable Instruments Act creates a legal presumption in favour of the cheque holder in many of these respects, but the drawer can still raise defences, so proper documentation at every stage of this process matters.
Because the 30-day deadline is strict and non-extendable, send your notice by registered post with acknowledgement due (or speed post) as soon as possible after receiving the return memo — do not wait until close to the deadline. Keep the postal receipt and, once available, the delivery proof, along with a copy of the cheque, the bank's return memo, and the notice itself — you will need all of these together if you proceed to file a criminal complaint after the 15-day payment window lapses.
Within 30 days of receiving the bank's cheque return memo (dishonour memo). This deadline is strict — missing it can bar you from proceeding under Section 138.
15 days from the date of receipt of the notice. Only if payment is not made within this period does the right to file a criminal complaint arise.
Imprisonment for up to two years, a fine of up to twice the cheque amount, or both, in addition to the civil liability to repay the amount.
You must file the complaint within one month of the expiry of the 15-day notice period, so don't delay once that window has passed without payment.
Yes, a civil suit for recovery of the amount, independent of the criminal proceedings, remains available and is often pursued alongside or instead of the criminal complaint.
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