Cheque Bounced? Send the Section 138 Notice Within 30 Days
When a cheque bounces, send the drawer a written notice under Section 138 of the Negotiable Instruments Act, 1881 within 30 days of receiving the bank's return memo, demanding the exact cheque amount. The drawer then has 15 days from receiving the notice to pay; if they do not, you can file a complaint before the Magistrate within the next month. A cheque is valid for 3 months.
Section 138 time limits — the deadline for each step
| Step | Time limit | Law |
|---|---|---|
| Deposit the cheque | Within 3 months of the date written on it | RBI rule (from 1 April 2012) |
| Send the notice | Within 30 days of receiving the return memo | Section 138, NI Act |
| Drawer's time to pay | 15 days from receiving the notice | Section 138, NI Act |
| File the complaint | Within 1 month after that, before the Magistrate | Section 142, NI Act |
| Which court | Where your (the payee's) bank branch is | Section 142(2), NI Act |
What to do when a cheque bounces — 5 steps
Check your deadline
Enter the cheque date, the date you deposited it and the date you received the return memo. The notice must go within 30 days of the memo — Nyaykar's calculator works this out for free.
Demand the exact cheque amount
The Supreme Court held in 2025 (Kaveri Plastics) that the notice must demand the exact cheque amount. If you also want interest or costs, state them separately.
Send it by Speed Post / Registered A.D.
Keep the postal receipt and the tracking printout. Sending a copy by email or WhatsApp as well also helps.
Wait 15 days
The drawer must pay within 15 days of receiving the notice. Note the delivery date from the tracking.
No payment? File a complaint
After the 15 days, file a complaint before the Magistrate under Section 142 within 1 month. You will usually need an advocate in court.
Frequently asked questions
Within how many days must a cheque bounce notice be sent?
Within 30 days of receiving the bank's return memo. A notice sent after that does not give a Section 138 case for that dishonour. If the cheque is still within its 3-month validity, you can deposit it again — a fresh dishonour gives a fresh 30 days.
Can I claim interest in the notice?
Yes, but separately. Under the Supreme Court's 2025 ruling (Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul), the demand must be for the exact cheque amount; state interest or costs in a separate sentence (Suman Sethi v. Ajay K. Churiwal, 2000).
Is a notice sent by email or WhatsApp valid?
Some High Courts (for example the Allahabad High Court, 2024) have accepted email or WhatsApp notices. The safest way is to send it by Speed Post or Registered A.D., send an email or WhatsApp copy too, and keep every receipt.
Does Section 138 apply to a gift cheque that bounces?
No. Section 138 applies only when the cheque was given to pay a legally enforceable debt or liability — such as a loan, goods, services, salary or rent.
Whom do I send the notice to if a company's cheque bounces?
To the company, and under Section 141 also to the people who were in charge of and responsible for its business at the time. The notice should include a paragraph saying so.
Do I need a lawyer to send the notice?
No, you can send the notice yourself. But if you are not paid, you will usually need an advocate to file the complaint before the Magistrate. Nyaykar is not a law firm.
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Nyaykar is not a law firm and this is not legal advice. Documents are AI-assisted drafts — read them before sending. You file or send them yourself.