Cheque Bounce Legal Notice Generator (PDF)
Create an official, court-ready 15-day statutory demand notice for cheque dishonour under Section 138 of the Negotiable Instruments Act. Drafted according to High Court & Supreme Court legal guidelines.
1. Advocate / Legal Chamber Details
2. Complainant (Your Client / Payee)
3. Accused (Cheque Drawer / Defaulter)
4. Cheque & Bank Dishonour Details
1. This legal notice must be dispatched within 30 days of receiving the cheque return memo from the bank.
2. The notice gives the defaulter 15 days from delivery to make the full payment.
3. If the amount is not paid within 15 days, you have 30 days from the date the cause of action arises to file a criminal complaint before the Metropolitan Magistrate / Judicial Magistrate.
Step-by-Step Procedure for Section 138 NI Act Cheque Bounce in India
Cheque Dishonour
Bank issues return memo with reasons like "Funds Insufficient" or "Account Closed".
Serve Legal Notice (30 Days)
Notice must be dispatched via Speed Post / Registered Post A.D. within 30 days of memo date.
15-Day Cure Period
The drawer is granted 15 days from delivery to pay the full cheque amount.
File Criminal Complaint
If unpaid on the 16th day, file complaint within 30 days in the Magistrate Court.
Frequently Asked Questions on Cheque Dishonour Legal Notices
Can a Section 138 legal notice be sent by the payee directly without an advocate?
Under Section 138(b), the law states that the demand notice must be given in writing by the "payee or the holder in due course". While it is legally permissible for the payee to issue the notice directly, having an Advocate issue the notice on their formal legal letterhead carries immense evidentiary weight in court and often compels the defaulter to settle immediately.
What if the drawer refuses to accept or intentionally avoids delivery of the Speed Post?
The Supreme Court of India in landmark judgments (including C.C. Alavi Haji v. Palapetty Muhammed) held that when a notice is sent by Registered Post / Speed Post to the correct address, service is deemed to have been effected even if the envelope returns with remarks like "unclaimed", "refused", or "door locked". Always preserve the original postal receipt and online tracking report.
What are the penalties under Section 138 of the Negotiable Instruments Act?
Section 138 is a criminal offense punishable with imprisonment for a term of up to 2 years, or with a fine that may extend to twice the amount of the cheque, or both. Additionally, the court may order interim compensation up to 20% of the cheque amount under Section 143A.
Can notice be served through WhatsApp and E-mail?
Yes, courts in India now recognize electronic service via WhatsApp and registered email as valid modes of service under the Information Technology Act and Supreme Court guidelines, provided blue ticks / delivery receipts / email delivery logs are preserved alongside Speed Post.
Frequently asked questions
- What is the time limit to send a legal notice for cheque bounce in India?
- Under Section 138(b) of the Negotiable Instruments Act, 1881, the legal notice must be dispatched within 30 days of receiving the bank memo of dishonour.
- How many days does the drawer have to pay after receiving the notice?
- The drawer has a mandatory period of 15 days from the date of receipt of the legal notice to make the payment. If unpaid, the cause of action arises on the 16th day.
- What is the punishment for cheque bounce under Section 138?
- Cheque bounce is a criminal offense punishable with imprisonment for up to 2 years, or with a fine up to twice the cheque amount, or both.
This tool produces a formatted template from the details you enter. It is not legal, tax, or medical advice — see our Terms of Service. Requirements vary by jurisdiction and change over time, so have anything consequential checked by a qualified professional.