Cheque bounce: the Section 138 notice and deadlines
Updated 2026-10 · General information, not legal advice.
A bounced cheque given to pay a debt is a criminal offence under Section 138 of the Negotiable Instruments Act. The law sets strict deadlines, and missing one can end your case.
When to use this
- A cheque given to you came back unpaid
- The bank gave a return memo, for example "funds insufficient"
- The cheque was for a debt or money owed to you
Step by step
- 1
Keep the return memo
The 30-day clock starts when you get the bank memo.
- 2
Send the notice within 30 days
Demand payment of the cheque amount within 15 days of receiving the notice.
- 3
Wait 15 days
Many people pay in this window to avoid a criminal case.
- 4
File the complaint within a month
If unpaid, file before the Magistrate within one month after the 15 days end.
Key facts
- Notice within 30 days of the return memo
- 15 days for the other side to pay
- Punishment can be up to 2 years in jail or a fine of up to twice the cheque amount
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Common questions
What if I missed the 30-day deadline?
A Section 138 case may no longer be possible, but you may still recover the money through a civil case. Talk to an advocate.
Does the notice have to come from an advocate?
Not by law, but because the deadlines are strict, most people use an advocate.