Cheque bounce notice format (Section 138) with sample

Updated 2026-10

For a bounced cheque, the notice must go to the drawer within 30 days of receiving the bank's return memo. This sample shows what it should state.

LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
Date: [DATE]
By Registered Post AD / Speed Post / Email

To,
[DRAWER'S NAME]
[FULL ADDRESS]

Subject: Notice for dishonour of cheque no. [CHEQUE NUMBER] for Rs. [AMOUNT]

Dear Sir/Madam,

Under instructions from and on behalf of my client, [PAYEE NAME], resident of [PAYEE ADDRESS], I hereby serve upon you the following notice:

1. You owe my client Rs. [AMOUNT] as a legally enforceable debt / liability, [EXPLAIN HOW THE MONEY BECAME DUE: LOAN, GOODS, SERVICE, ETC.].
2. In discharge of that debt you issued cheque no. [NUMBER] dated [DATE] for Rs. [AMOUNT], drawn on [BANK AND BRANCH].
3. My client presented the cheque for payment on [DATE]. It was returned unpaid by the bank with a return memo dated [DATE], the reason being "[REASON, E.G. FUNDS INSUFFICIENT]".
4. My client received the return memo on [DATE].

LEGAL POSITION
5. Dishonour of a cheque issued for a debt is an offence under Section 138 of the Negotiable Instruments Act, 1881, and the law presumes the cheque was issued for a debt (Section 139). This notice is given within thirty days of my client's receipt of the return memo.

DEMAND
6. You are called upon to pay the cheque amount of Rs. [AMOUNT] within fifteen days of receipt of this notice, by [MODE OF PAYMENT AND ACCOUNT DETAILS].

Failing payment within fifteen days, my client shall file a criminal complaint against you under the applicable provisions before the competent court, and may also pursue civil recovery with interest and costs, entirely at your risk as to costs and consequences.

A copy of this notice is retained for record. This notice is without prejudice to my client's other rights and remedies.

[ADVOCATE'S SIGNATURE]
[ADVOCATE NAME], Advocate
[ENROLMENT NUMBER, ADDRESS, CONTACT]

A sample for understanding the format. It is general information, not legal advice. An advocate should check a notice before it is sent.

How to fill it in

• The debt: explain how the money became due
• Cheque number, date, amount, bank and branch
• The date you presented it and the date and reason on the return memo
• The date you received the return memo (the 30 days run from here)
• A 15-day demand and how to pay

Key facts

• Send within 30 days of receiving the return memo
• The drawer has 15 days from receiving the notice to pay
• The complaint must be filed within one month after those 15 days

Read the full guide: Cheque bounce: the Section 138 notice and deadlines

Common questions