WHAT IS Cheque Bounce notice?


Cheque Bounce or dishonour of cheque occurs when the cheque that is presented to the bank for payment, is returned back either due to insufficient funds in the drawer’s account or the signature on the cheque does not match with the drawer’s signature or any other reason. In India, cheque bounce is considered a legal offence and the law regulating the offence is section 138 of the Negotiable Instrument Act, 1881.  It is necessary to send a legal notice within 30 days from the date of return (dishonour) of cheque asking the noticee to pay the amount within 15 days. On expiry of fifteen days from the service of notice, you have to file a complaint before the concerned magistrate within 1 month of the said expiry.



Discuss your legal matter for free with a lawyer over a phone call

Provide all details required by a lawyer to send a legal notice

You will receive notice draft from assigned lawyer by E-mail

Lawyer-verified & signed notice will be sent directly via registered post

Reasons for Cheque Bounce


Following are some of the reasons why a cheque is bounced or dishonoured:

  • 1. Insufficient funds in the account of the person issuing the cheque
  • 2. Unmatching signature on the cheque
  • 3. Post dated cheque i.e. the date mentioned on the cheque is yet to come
  • 4. Stale cheque i.e. the cheque is presented to the bank 3 months after the cheque was issued
  • 5. When the payment is stopped- if the drawer asks the bank to stop the payment and not to pay for cheque already issued
  • 6. Difference in amount in words and number 
  • 7. Disfigured or Damaged cheque- a cheque will be dishonoured if it is torn, damaged or not in a good condition or has some details not clearly visible 



ADDRESS of the applicant



Address where legal notice to be sent

A cheque is said to be dishonoured or bounced when it is presented for payment to a bank but it is not paid by the bank because of some reason. Reasons may be fraud, insufficient funds, crossed cheque, mistake on the cheque etc.

The Complaint under Section 138 of the NI Act should be filed in the jurisdictional Magistrate Court within whose territorial jurisdiction the Bank/branch in which the payee/holder hold an account is located.

Cheque bounce is a criminal offence punishable with imprisonment for a term upto two years or with a fine twice the amount of the cheque or both.

If the cheque issuer fails to make a fresh payment within 15 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. Waytolegal.com has hundreds of experienced, verified lawyers who can help you file the case in the respective local jurisdictional court.

If payee wishes to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately. Such a chance has to be given only in the form of notice in writing. The payee has to send the notice to the drawer within 30 days from the date of receiving “Cheque Return Memo” from the bank. The notice should mention that the cheque amount has to be paid to the payee within 15 days from the date of receipt of the notice by the drawer. If the cheque issuer fails to make a fresh payment within 15 days of receiving the notice, after notice period the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act within 30 days. However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period. It is essential in this case to consult an advocate who is well versed and experienced in this area of practice to proceed further in the matter.

The "Reply To" address in the legal notice shall contain your address. Hence, if the other party chooses to reply to your notice, it will come to your address.

A legal notice is a way to communicate your intent to initiate legal action against another party. According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. Often the counterparty may either give in to the threat of litigation and comply with the conditions laid down in the notice or be compelled to settle the issue outside of court, which is beneficial for both the parties. If the counterparty does not respond to the legal notice, then you may approach the court to agitate your interest.

1. Once the payment is made, our lawyers will draft the legal notice and send it for your approval in 48 hours. 2. Upon your approval, our lawyers will send the hard copy of the signed legal notice by registered post to the person against whom you have the grievance. 3. Soft copies of the signed legal notice and postal receipt shall be sent to you for further reference.

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