Cheque Bounce Notice Format & Sample (Section 138)

When a cheque is dishonoured, the demand notice is the single most important document in a cheque bounce case. Under Section 138 of the Negotiable Instruments Act, 1881, you cannot file a criminal complaint until you have first served a valid written notice and waited for the statutory period to pass. Get the notice wrong — or send it late — and an otherwise strong case can be dismissed. This guide explains what the notice is, the strict timeline, the mandatory contents, and gives you a clear sample format. Our cheque bounce lawyers draft and serve these notices for clients across Delhi.

What is the Section 138 demand notice?

It is a formal written demand calling on the drawer (the person who issued the cheque) to pay the cheque amount after the cheque has been returned unpaid. Sending this notice is a mandatory pre-condition to prosecution — it is not optional. The offence under Section 138 is only complete once the drawer fails to pay within the time the notice allows.

The strict timeline — get every date right

The timeline is the heart of a cheque bounce case. Missing a deadline can be fatal.

Step	What happens	Deadline
1. Dishonour	The bank returns the cheque with a return memo	—
2. Demand notice	You send a written notice demanding payment	Within 30 days of receiving the return memo
3. Payment window	The drawer is given time to pay	15 days from receiving the notice
4. Cause of action	If unpaid after 15 days, the offence is complete	Day 16
5. Complaint	You file a criminal complaint before the Magistrate	Within 1 month of the end of the 15-day period

Two windows are absolutely strict: the 30-day window to send the notice (counted from receipt of the cheque-return memo), and the one-month window to file the complaint (counted from the day after the 15-day payment period expires). A complaint filed too early — before the 15 days are up — or too late is liable to be thrown out. For the full procedure after the notice, see our guide on the Section 138 process and timeline.

Mandatory contents of the notice

To be valid, the demand notice must be in writing and must clearly contain:

• Name and address of the drawer (the person who issued the cheque) and of the payee or their advocate.
• Cheque particulars — cheque number, date, amount, and the drawee bank and branch.
• The transaction — that the cheque was issued towards a legally enforceable debt or liability.
• Presentation and dishonour details — the date the cheque was presented, the date it was returned, and the reason for dishonour as stated in the bank’s return memo (e.g. “insufficient funds”).
• A clear demand to pay the exact cheque amount within 15 days of receipt of the notice.
• A warning that, failing payment, criminal proceedings under Section 138 NI Act will be initiated.

Demanding more than the cheque amount (for example, lumping in extra “damages”) in a way that obscures the actual cheque sum can weaken the notice, so the cheque amount must be stated clearly.

Sample / format of the notice

Use the template below as a starting point. Replace every placeholder in [square brackets] with your actual details.

                                                    Date: [DD/MM/YYYY]

By Registered Post A.D. / Speed Post

To,
[Full Name of Drawer]
[Complete Address of Drawer]

Subject: Legal demand notice under Section 138 of the
Negotiable Instruments Act, 1881 — dishonour of cheque
no. [Cheque No.] for Rs. [Amount].

Sir/Madam,

Under instructions from and on behalf of my client,
[Name of Payee], resident of [Address], I serve upon you
the following notice:

1. That you issued cheque no. [Cheque No.] dated
   [Cheque Date] for Rs. [Amount] (Rupees [Amount in words])
   drawn on [Bank Name], [Branch], in discharge of a legally
   enforceable debt/liability arising out of [state the
   transaction, e.g. goods supplied / loan / services].

2. That my client presented the said cheque for encashment,
   and the same was returned unpaid on [Return Date] with the
   bank's memo stating the reason "[Reason, e.g. Funds
   Insufficient]".

3. That you have thereby committed an offence under Section
   138 of the Negotiable Instruments Act, 1881.

I therefore call upon you to pay the sum of Rs. [Amount]
to my client within FIFTEEN (15) DAYS of receipt of this
notice, failing which my client shall be constrained to
initiate criminal proceedings against you under Section 138
of the Negotiable Instruments Act, 1881, at your sole risk,
cost and consequences.

A copy of this notice has been retained in my office for
record and further necessary action.

                                          [Advocate Name]
                                          [Enrolment No.]
                                          [Address & Contact]

This is a model only; the wording should always be tailored to your facts. A poorly drafted notice is a common reason cheque bounce cases fail.

How to send the notice

• Send it by a traceable mode — registered post with acknowledgement due (A.D.) or speed post — and keep the postal receipt and tracking record.
• Send it to the drawer’s correct address. Service to the proper address is presumed even if the drawer refuses or avoids it.
• Keep an office copy and proof of dispatch; these become exhibits in court.
• Email or courier can supplement, but registered/speed post is the safest primary mode.

What happens next

If the drawer pays within 15 days, the matter ends. If the drawer does not pay, the offence under Section 138 is complete on day 16, and you may file a criminal complaint before the Magistrate within one month. On conviction, the drawer faces imprisonment of up to two years, a fine of up to twice the cheque amount, or both.

Interim compensation — the 2018 amendment

The Negotiable Instruments (Amendment) Act, 2018 strengthened the payee’s hand:

• Section 143A — the trial court may order the drawer to pay interim compensation of up to 20% of the cheque amount even while the trial is pending. (The Supreme Court has clarified this power is discretionary, not automatic.)
• Section 148 — if the convicted drawer appeals, the appellate court may direct a deposit of a minimum of 20% of the fine or compensation awarded.

For a wider overview of the offence and the provisions around it, see our explainer on cheque bounce and the legal provisions associated with it.

Key takeaways

• Send the demand notice within 30 days of the cheque-return memo.
• Give the drawer 15 days to pay; the offence completes only after that.
• File the complaint within one month of the 15-day period ending.
• Use a traceable mode of service and keep all proof.

This is general information, not legal advice. Consult our lawyers for advice on your situation.