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Cheque Bounce Notice Format – How to Send a Legal Notice Under NI Act
- The Law Gurukul
- Jul 8
- 4 min read
A bounced cheque can be a frustrating experience, but the Negotiable Instruments Act, 1881 (NI Act) provides legal recourse to recover your money. The first step is sending a legal notice for cheque bounce to the defaulter.
In this blog, we’ll cover:
✔ What is a Cheque Bounce Notice?
✔ When Should You Send It?
✔ Cheque Bounce Notice Format (Free Downloadable Template)
✔ How to Send the Notice?
✔ Next Steps if the Defaulter Doesn’t Respond
1. What is a Cheque Bounce Notice?
A cheque bounce notice is a formal legal demand sent to the issuer (drawer) of a dishonoured cheque, asking them to repay the amount within 15 days. If they fail to comply, you can file a criminal complaint under Section 138 of the NI Act.
Common Reasons for Cheque Bounce:
Insufficient Funds (Most common reason)
Signature Mismatch
Account Closed
Cheque Expired (Stale Cheque – 3 months validity)
Alterations Without Authorization
2. When Should You Send a Cheque Bounce Notice?
The cheque was dishonoured by the bank (you must have the bank return memo).
You must send the notice within 30 days of receiving the cheque bounce memo.
The notice must give the defaulter 15 days to repay.
⚠️ Important: If you don’t send the notice within 30 days, you lose the right to file a legal case under Section 138.
3. Cheque Bounce Notice Format (Free Downloadable Template)
Here’s a standard legal notice format for a bounced cheque:
LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
To,[Name of the Cheque Issuer][Address]
Subject: Legal Notice for Dishonour of Cheque No. [Cheque Number] Dated [Date] for ₹[Amount]
Dear Sir/Madam,
I am the payee of Cheque No. [Cheque Number] dated [Date], drawn on [Bank Name], Branch [Branch Name], for the sum of ₹[Amount].
Upon presenting the cheque, it was dishonoured due to [Reason: "Insufficient Funds"/"Account Closed"/etc.], as per the bank return memo dated [Date].
This act constitutes an offence under Section 138 of the Negotiable Instruments Act, 1881.
I hereby demand that you pay the cheque amount of ₹[Amount] within 15 days of receiving this notice.
If you fail to comply, I shall initiate criminal proceedings against you under the NI Act, along with a claim for interest and legal costs.
Take notice that this is the final demand before legal action.
Your Faithfully,
[Your Name]
[Your Address]
[Contact Number]
[Email ID]
Enclosed:
Copy of the dishonoured cheque
Bank return memo
Download a template
How to Use This Template?
Fill in the Blanks:
Replace all [bracketed text] with your actual details
Specify exact cheque details and bounce reason
Attach Supporting Documents:
Copy of bounced cheque
Bank return memo (mandatory)
Dispatch Method:
Send via Registered AD/Speed Post
Keep the postal receipt as proof
Optional: Send via email as additional evidence
Important Timelines:
Must be sent within 30 days of cheque bounce
Defaulter gets 15 days to pay from notice receipt
Frequently Asked Questions
Q: Is notarization required for this notice?
A: No, notarization is not mandatory for a cheque bounce notice.
Q: Can I send this notice via email?
A: While email can be additional proof, the primary notice must be sent via registered post.
Q: What if the address is wrong?
A: Ensure accurate address - an undelivered notice may invalidate your case.
Q: What next if payment isn't received in 15 days?
A: You may file a criminal complaint before the Magistrate within 30 days after the 15-day notice period.
4. How to Send the Cheque Bounce Notice?
Draft the Notice – Use the above format or consult a lawyer.
Print on Plain Paper (No stamp paper needed).
Send via Registered AD/Speed Post – Keep proof of delivery.
Email & WhatsApp (Optional) – Additional evidence.
⚠️ Important:
The 30-day notice period starts from the cheque bounce date.
The defaulter has 15 days to pay after receiving the notice.
5. What If the Defaulter Doesn’t Pay?
If the issuer does not repay within 15 days, you can:
✔ File a Criminal Complaint – Under Section 138 NI Act (Punishment: Up to 2 years jail + Double the cheque amount as fine).
✔ File a Civil Suit – For recovery with interest.
✔ Send a Final Demand Notice – Through a lawyer for stronger impact.
Time Limit:
Complaint must be filed within 30 days after the 15-day notice period expires.
6. Defences Against Cheque Bounce Cases
The issuer can avoid liability if they prove:
The cheque was stolen/forged.
There was no legal debt or liability.
The notice was not sent within 30 days.
Final Thoughts
A cheque bounce notice is a crucial step before taking legal action. Ensure you:
✅ Send it within 30 days of the bounce.
✅ Use registered post for proof.
✅ Keep all bank documents (cheque, return memo).
Need Help Drafting/Sending a Notice?
Have questions? Ask in the comments! 💬