Cheque Bounce Legal Notice Format & Rules (2026)

The Legal Notice is the foundation of your entire Section 138 case. It is not just a letter; it is a statutory requirement.

If your notice is defective, your complaint will be dismissed by the court, often after 2-3 years of fighting, forcing you to start from scratch. This guide ensures you get it right the first time.

📝 The "Golden 5" Ingredients of a Valid Notice

According to the Negotiable Instruments Act and landmark Supreme Court judgments (like Central Bank of India vs Saxons Farms), a notice must strictly contain these five elements:

1. Fact of Presentation: You must state that you presented the cheque to the bank.
2. Fact of Dishonour: You must state that the cheque was returned unpaid, citing the exact memo date and reason.
3. Clear Demand: You must explicitly demand the payment of the "amount of the cheque".
4. 15-Day Timeline: You must explicitly give the defaulter 15 days from the receipt of notice to pay.
5. Assertive Language: It must communicate that you intend to take legal action if unpaid.

[!WARNING] The "Interest" Trap Do NOT add interest or legal charges to the principal demand sum.

• Wrong: "Pay me Rs. 1,00,000 (Cheque) + Rs. 5,000 (Notice Cost) = Rs. 1,05,000"
• Right: "Pay me Rs. 1,00,000 (Cheque Amount). Separately, you are also liable for Rs. 5,000 costs."
• Why? The Supreme Court ruled that demand must be for the "cheque amount". Adding other sums to the main demand can invalidate the notice (case: Suman Sethi vs Ajay K. Churiwal).

📄 Cheque Bounce Legal Notice Format (Template)

BY REGISTERED POST WITH A/D

Date: [DD/MM/YYYY]

To, [Name of Accused/Defaulter] [Father's Name (if known)] [Complete Address] [Mobile Number (optional)]

SUBJECT: STATUTORY NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

Dear Sir/Madam,

Under the instructions and authority of my client, [Your Name/Company Name], resident/office at [Your Address], I serve you with the following legal notice:

1. That you are well acquainted with my client and had approached my client for [Brief Reason: e.g., a friendly loan of Rs. 5 Lakhs / purchase of goods vide Invoice No. 123].

2. That in discharge of the said legally enforceable debt/liability, you issued the following Cheque in favor of my client:

   • Cheque No: [XXXXXX]
   • Date: [DD/MM/YYYY]
   • Amount: Rs. [Amount in Figures] (Rupees [Amount in Words])
   • Bank: [Bank Name & Branch]

3. That my client presented the said cheque for encashment on [Date of Deposit] through their banker [Your Bank Name].

4. That, to the shock and surprise of my client, the said cheque was returned unpaid/dishonoured by your banker with the remarks "[Reason: e.g., Funds Insufficient]" vide Cheque Return Memo dated [Date of Memo] which was received by my client on [Date of Receipt].

5. That strictly speaking, you have failed to maintain sufficient funds in your account to honor the cheque issued by you, thereby committing an offense under Section 138 of the Negotiable Instruments Act, 1881 as amended up to date.

I HEREBY CALL UPON YOU to make the payment of the entire cheque amount of Rs. [Amount] to my client within 15 (FIFTEEN) days from the receipt of this notice.

TAKE NOTICE that if you fail to comply with this demand within the stipulated period, my client shall be constrained to initiate criminal proceedings against you under Section 138 of the NI Act, in the competent court of law, at your sole risk, cost, and consequence.

You are also liable to pay Rs. [Cost] towards the cost of this legal notice.

A copy of this notice is retained in my office for record and further legal action.

[Signature] [Advocate Name] [Advocate Address & Contact]

❌ Common Drafting Mistakes to Avoid

1. Wrong Cheque Number: A typo in the cheque number (e.g., 123456 vs 123465) is fatal. Double-check.
2. Vague Demand: Saying "Pay the loan amount" instead of "Pay the cheque amount".
3. Missing "15 Days": If you demand payment "immediately" or "within 7 days", the notice is invalid. New Section 138(b) strictly requires 15 days.
4. Sending via WhatsApp Only: While newer judgments allow WhatsApp service (see In Re Cognizance for Extension of Limitation), it is secondary proof. Always prioritize RPAD (Registered Post).

📬 How to Send It Correctly

• Mode: Speed Post or Registered Post with Acknowledgment Due (RPAD).
• Address: Send it to the last known correct address. If the defaulter is a company, send it to the Company AND its Directors.
• Proof: Keep the postal receipt and print the online tracking report showing "Item Delivered" or "Item Returned".
• Unclaimed: If the notice returns with "Unclaimed" or "Refused", keep the sealed envelope AS IS. Do not open it. Hand it over to the court during trial.

Related Content

• Back to Complete Guide
• Procedure After Notice
• How to Reply (Defense)