Cheque bounce legal notice in Punjab and Chandigarh: section 138 steps and deadlines
When a cheque bounces, section 138 of the Negotiable Instruments Act, 1881 turns the return into an offence only if you send the drawer a written demand within 30 days of receiving the bank’s information that the cheque was returned, and the drawer then fails to pay within 15 days of receiving that demand.
The notice needs no stamp paper, no registration, no notary and no witness; what matters is proof that it went out in time and reached the drawer.
If the money is not paid, the next step is a criminal complaint to the Magistrate, which is due within one month of the day after the 15 days end.
Checked on against the cheque dishonour notice, the Magistrate complaint and the reply on our own document pages. Those pages carry no check date of their own, and we have not re-checked the time limits against the statute. A missed date can end the right to prosecute, so have an advocate confirm your own dates before you rely on them. Guide updated .
What does section 138 require after a cheque bounces?
| Step | Time limit |
|---|---|
| Present the cheque | Within three months of its date. The section allows six months or the cheque’s validity, whichever is earlier, but under the RBI circular of 4 November 2011 no bank has paid a cheque presented more than three months after its date since 1 April 2012. |
| Send the written demand | Within 30 days of receiving the bank’s information that the cheque was returned. |
| The drawer must pay | Within 15 days of receiving the demand. |
| File the complaint | Within one month of the day after those 15 days end. A later complaint can be accepted if you show sufficient cause for the delay. |
The 30 days run from the day you receive the bank’s return memo, not from the date on the cheque or the day you presented it. Keep that date on record, because it decides whether the notice is on time.
What goes into a cheque bounce legal notice?
The notice is the demand. It records the debt the cheque was given for, the cheque, when and through which account it was presented, the return memo and its reason, and the day the memo reached you, so that every date a court will check later is fixed from the start.
A return marked funds insufficient, exceeds arrangement, account closed, payment stopped, refer to drawer, signatures do not match or image not found is a dishonour the section reaches. Where the drawer is a company, the notice also goes to the managing director and the officers who ran its affairs.
Demand the cheque amount alone. Interest and costs, if you want them, are claimed separately, so that the statutory demand is not challenged as overstated.
How do you send it, and what proof do you keep?
| Question | Answer |
|---|---|
| Stamp paper | None. It is not an instrument within section 2(14) of the Indian Stamp Act, 1899. |
| Registration | Not registrable. |
| Notary | A notary’s seal adds nothing to it. |
| Witnesses | None. The payee, or the advocate on the payee’s instructions, signs alone. |
No one method of sending is required, but you must be able to prove it went out within 30 days and reached the drawer. Registered post with acknowledgement due, or speed post with tracking, gives a dated receipt and delivery record. Keep the receipt, the tracking report and the acknowledgement card with the office copy.
What happens if the drawer does not pay in 15 days?
Once the 15 days pass without payment, the offence is complete and you may file a criminal complaint before the Magistrate having jurisdiction. Section 138 punishes it with imprisonment of up to two years, a fine of up to twice the cheque amount, or both. The offence can be settled at any stage, even after the complaint is filed.
Our Cheque Bounce Complaint to Magistrate is that complaint. It is due within one month of the day after the 15 days end; the Magistrate may accept a later one for sufficient cause, but do not rely on that, so work out the date before filing. It carries no stamp duty, is not registrable and is not notarised, though a nominal court process or e-filing fee may apply, to be confirmed at the filing counter.
A convicted drawer who challenges the Magistrate’s judgment before the Sessions Court may be ordered to deposit at least 20% of the fine or compensation under section 148.
What if you are the one who gave the cheque?
If you gave the cheque and received a notice, the Reply to Cheque Bounce Notice records your side before any complaint is filed: that there is no debt, that the cheque was only a security, that you have paid, or that the amount is wrong. It is not a way to avoid paying a debt that is genuinely owed.
What mistakes can cost you the case?
- Counting the 30 days from the date on the cheque, or from when it was presented, instead of the day the return memo reached you.
- Demanding more than the cheque amount in the main demand.
- Sending the notice by a method with no proof of delivery.
- Skipping the notice. Without it, sent within 30 days of learning of the return, no offence under section 138 arises.
- Naming a company director, other than a managing director, without showing how that director was in charge of its affairs.
How do you make a cheque bounce legal notice on Kagaznama for free?
Fill in our free Cheque Dishonour Legal Notice on this site. Have ready the cheque (number, date, amount, bank, branch and account), the bank’s return memo with its date and reason, the date you actually received it, the full addresses of payee and drawer, and, for a company drawer, the officers who should get a copy.
Questions people ask
How many days do I have to send a cheque bounce notice?
Thirty days, but the clock starts from the day you received the bank’s information that the cheque was returned, not from the date on the cheque and not from the date it was presented. Keep the date you actually got the return memo on record, because that date decides whether the notice is on time.
Is a legal notice compulsory before a cheque bounce case?
Yes. The notice is the legal precondition for the criminal route under section 138. Without it, sent within 30 days of learning of the return, no offence arises, and the right to prosecute can be lost even where the debt is genuine.
Does a cheque bounce notice need stamp paper or a notary?
No. In Punjab and Chandigarh no stamp duty is payable on it, it is not registrable, and a notary’s seal adds nothing. It works by being sent in writing in time and by reaching the drawer, so keep the postal or courier receipt, the tracking report and the acknowledgement.
What is the punishment under section 138?
Imprisonment of up to two years, a fine of up to twice the cheque amount, or both, once the drawer fails to pay within 15 days of receiving the demand.
Can I send the notice again if the cheque bounces a second time?
A fresh presentation and a fresh return start the 30-day notice clock again from that later return, provided the cheque is still being presented within its period of validity. Treat each return on its own dates rather than assuming the first notice covers a later bounce.
This guide explains the rules as our document pages state them. It is not legal advice about your own situation; for that, speak to somebody who has heard your facts.