Cheque Bounced? Take Legal Action Now!
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Cheque Bounce Legal Notice Under Section 138 of NI Act
When a cheque is dishonoured due to insufficient funds, it is a criminal offence. You have the legal right to send a mandatory notice under Section 138 of the Negotiable Instruments Act, 1881. This notice must be sent strictly within 30 days of receiving the cheque return memo. Failure to adhere to this timeline can invalidate your legal claim.
What is a Cheque Bounce Legal Notice?
A cheque bounce legal notice is a mandatory legal notice that must be sent under Section 138 of the Negotiable Instruments Act 1881 when a cheque is dishonored due to insufficient funds or any other reason. This notice is a prerequisite before filing a criminal complaint for cheque bounce and must be sent within 30 days of receiving the cheque return memo from your bank.
- Mandatory under Section 138 of NI Act 1881
- Must be sent within 30 days of cheque dishonor
- Gives drawer 15 days to make payment
- Prerequisite for filing criminal complaint
- Criminal offense punishable with imprisonment or fine or both
Legal Provisions for Cheque Bounce in India
Section 138 of the Negotiable Instruments Act makes dishonor of cheque for insufficient funds a criminal offense. If a cheque is returned unpaid by the bank, the payee must send a legal notice within 30 days of receiving the return memo. The drawer then has 15 days to make the payment. If payment is not made, a criminal complaint can be filed within 30 days, leading to potential imprisonment up to 2 years, monetary fine up to twice the cheque amount, or both.
Strict Timeline for Cheque Bounce Notice
The cheque bounce legal framework has strict timelines that must be followed:
- Within 30 days of cheque dishonor: Send legal notice to drawer
- Drawer gets 15 days from notice receipt: To make payment
- Within 30 days of 15-day period ending: File criminal complaint if unpaid
- Missing these deadlines can make your complaint time-barred and invalid
What Should a Cheque Bounce Notice Contain?
A legally compliant cheque bounce notice must include:
- Details of the cheque (number, date, amount, bank)
- Date when cheque was presented and dishonored
- Reason for dishonor as per bank's return memo
- Demand for payment of cheque amount within 15 days
- Statement that complaint will be filed under Section 138 if unpaid
- Copy of dishonored cheque and bank return memo
- Advocate's signature and details
Consequences of Cheque Bounce for Drawer
Under Section 138 of the Negotiable Instruments Act, cheque bounce is a criminal offense with serious consequences:
- Imprisonment: Up to 2 years
- Monetary fine: Up to twice the cheque amount
- Criminal record: Affects reputation and future transactions
- Compensation: May be ordered to pay cheque amount plus interest and costs
- Travel restrictions: Court may restrict travel during trial
Why Immediate Action is Critical
In cheque bounce cases, time is of the essence. The 30-day deadline to send the notice starts from the date you receive the cheque return memo from your bank. If you miss this deadline, you lose the legal right to file a criminal complaint under Section 138. This is why it's crucial to act immediately upon cheque dishonor. VakilTech ensures your notice is drafted and sent within the legal timeline, protecting your rights.
Time is running out. You only have 30 days from the date of the return memo to act. Send your Section 138 notice immediately.
How Section 138 Notice Recovered
₹12 Lakhs
Priya received a bounced cheque of ₹12 lakhs. She sent a legally compliant Section 138 notice through VakilTech. Within 15 days, the drawer paid the full amount plus compensation to avoid criminal prosecution.
Criminal Prosecution Threat
Strong DeterrentSection 138 allows both civil and criminal action, making it highly effective for recovery.
Mandatory Timeline
Notice must be sent within 30 days of cheque dishonour, giving 15 days to pay.
Double Recovery
2x CompensationRecover the cheque amount plus compensation up to twice the cheque value.
How We Work
SIMPLE & EFFECTIVE
Case Review
Case Review
Share your details and documents. A licensed lawyer reviews your case and calls you for consultation.
Drafting
Drafting
A custom legal notice is drafted based on your facts. You review and approve before anything is sent.
Dispatch
Dispatch
The notice is sent via Speed Post. You receive delivery proof and scanned copies.
Roadmap: What Happens After Sending the Notice?
Clear next steps based on how the other party responds
Mediation/Settlement
If they offer partial payment or ask for time, draft a Settlement Agreement binding them to a payment schedule.
Closure
If full payment is made, issue a receipt and close the matter.
Review
Analyze their defense (e.g., 'security cheque', 'lost cheque').
File Case
If the defense is weak, file a Criminal Complaint u/s 138 before the Judicial Magistrate within 30 days of the expiry of the 15-day notice period.
File Case
Immediate filing of Criminal Complaint u/s 138.
Authority Complaint
Optionally, file a cheating complaint (Section 420 IPC) at the local police station if fraudulent intent is clear from the start.
Section 138 of
Negotiable Instruments Act
Cheque bounce is a criminal offence under Section 138 of the Negotiable Instruments Act, 1881, which provides for imprisonment up to 2 years and fines up to twice the cheque amount.
EXPERT INSIGHT
The Supreme Court has reiterated that the objective of Section 138 is to ensure the credibility of commercial transactions.
Why VakilTech!
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Resolve disputes from the comfort of your home.
Rapid Drafting (24 hrs)
Drafts ready for review in 24 hours.
Cost-Efficient vs Local Lawyers
Save 80% compared to local lawyers.
See a Real Cheque Bounce Legal Notice Format
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Sample Legal Notice — Cheque Bounce Legal Notice
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Real People. Real Results.
Join hundreds of Indians who trust Vakil Tech for all their legal needs.
My landlord refused to return my ₹45,000 security deposit for months. After sending the legal notice through VakilTech, he returned the full amount within 10 days. The draft was very strong.
Rohan MalhotraSoftware Engineer, BangaloreA builder in Noida was delaying possession by 2 years. I sent a legal notice for refund with interest. They finally called me for a settlement meeting. Highly recommended for property issues.
Suresh GuptaGovernment Employee, DelhiI was not getting my salary dues from my previous employer. The legal notice drafted by VakilTech showed I was serious. They cleared my dues to avoid court trouble. Thank you!
Anjali DesaiMarketing Executive, MumbaiStandard legal notice for cheque bounce. The process was simple, and the lawyer added all necessary sections under the NI Act. Very professional service.
Vikramjit SinghBusiness Owner, LudhianaBought a defective fridge and the company wasn't replacing it. Sent a consumer notice. They replaced it immediately after receiving the notice. Fast and effective.
Meera NairHomemaker, Kochi
Frequently Asked Questions
Everything you need to know about cheque bounce legal notice