A bounced cheque under Section 138 of the Negotiable Instruments Act is one of the most timeline-sensitive matters in Indian law — miss a deadline by a day and the complaint fails. Whether you are the payee chasing your money or the drawer who has received a notice, the steps and dates below decide the outcome. For the broader procedure see how to file a cheque bounce case and punishment and defences.
The Section 138 timeline — memorise these dates
- Cheque dishonoured. The bank returns it with a memo (insufficient funds, account closed, payment stopped, etc.). Keep the return memo — it is the foundational document.
- Within 30 days of the return memo: the payee must send a written demand notice to the drawer demanding payment of the cheque amount.
- 15 days for the drawer to pay from receipt of the notice.
- If unpaid, the cause of action arises on expiry of those 15 days. The complaint must then be filed within 30 days of that date before the appropriate magistrate.
Each window is strict. The single most common reason a genuine claim collapses is a notice sent late or a complaint filed after the 30-day window.
What the demand notice must contain
- The cheque details — number, date, amount, drawer bank.
- The date and reason of dishonour, referencing the bank return memo.
- The underlying liability — why the cheque was issued (debt/loan/goods/services).
- A clear demand to pay the cheque amount within 15 days of receipt.
- Sent to the drawer's correct address through a traceable channel (registered post/courier with proof), and ideally email — service is frequently contested, so proof of dispatch and delivery matters.
If you received a cheque bounce notice — how to reply
A reply is not mandatory, but a well-drafted reply protects you and shapes the later trial. A reply should be considered where:
- The cheque was given as security, not in discharge of a presently-due debt;
- There is no legally enforceable debt (the consideration failed, the goods were defective, the loan was repaid);
- The cheque was misused, materially altered, or filled in without authority;
- The notice itself is defective — sent late, to the wrong address, or demanding more than the cheque amount.
What you must not do is ignore a notice on the assumption it will go away. Silence is read against the drawer at trial, and the statutory presumption under Section 139 (that the cheque was issued for a debt) operates in the payee's favour unless the drawer raises a probable defence. The reply is your first chance to set up that defence on record.
Why this is worth getting right
Section 138 matters are often settled, and the strength of your notice or reply substantially affects the settlement figure and timeline. For the payee, a clean notice and a timely complaint maximise leverage; for the drawer, a properly-reasoned reply can convert an apparently open-and-shut case into a negotiation. Either way, the drafting and the calendar are where cases are won or lost. A fixed-fee review of your notice, reply or timeline is the proportionate first step.
Frequently asked questions
How many days do I have to send a cheque bounce notice?
The payee must send the written demand notice within 30 days of receiving the bank's cheque return memo. The drawer then has 15 days to pay; if unpaid, the complaint must be filed within 30 days of expiry of that 15-day period.
Is it compulsory to reply to a cheque bounce notice?
No, a reply is not mandatory, but a well-drafted reply is strongly advisable — it puts your defence on record (security cheque, no enforceable debt, defective notice) and counters the Section 139 presumption. Ignoring a notice is read against the drawer at trial.
What if the cheque was given only as security?
That is a recognised defence, but it must be raised and substantiated — typically in the reply and at trial. The cheque having been given as security rather than in discharge of a presently-due debt can defeat a Section 138 case if proved.
What makes a cheque bounce notice defective?
Common defects: sent after the 30-day window, sent to the wrong address, no proof of dispatch/service, or demanding more than the cheque amount. A defective notice can be fatal to the complaint.
Cheque bounced, or notice received?
Share the cheque, the bank return memo and any notice for a read on your timeline and the strongest next step.