A Cheque Bounce Notice is a formal legal notice sent to a person whose cheque has been dishonoured by the bank.
Dishonour can happen due to insufficient funds, signature mismatch, account closure, or any other banking reason.
Under Section 138 of the Negotiable Instruments Act, the payee must send a legal notice before taking court action.
This guide explains the meaning, benefits, and step-by-step process in simple language.
What is a Cheque Bounce Notice?
It is a written notice sent by the payee (the person who receives the cheque) to the drawer (the person who issued the cheque) after the cheque gets dishonoured.
The notice demands:
- Payment of cheque amount
- Within 15 days of receiving the notice
If the drawer does not pay, legal action can be taken in court.
Common Reasons for Cheque Bounce
- Insufficient funds
- Incorrect signature
- Overwriting on cheque
- Cheque expired (older than 3 months)
- Account closed
- Payment stopped by drawer
- Mismatch in details
Benefits of Sending a Cheque Bounce Notice
Sending the notice has several advantages:
1. Legal Requirement for Court Case
You cannot file a cheque bounce case without first sending a notice.
2. Gives Opportunity for Settlement
The drawer gets a chance to pay and avoid legal trouble.
3. Creates Official Record
Shows proof that the cheque was dishonoured and action was taken.
4. Protects Your Financial Rights
Ensures your money is legally recoverable.
5. Faster Resolution
Many cases settle immediately after issuing the notice.
Step-by-Step Process for Sending a Cheque Bounce Notice in India
Step 1: Get the Cheque Return Memo from Bank
When the cheque bounces, the bank provides a Cheque Return Memo explaining the reason for dishonour.
Keep this document safely—it is required for legal action.
Step 2: Contact the Drawer
Sometimes a simple call or message resolves the issue.
If the drawer agrees to pay, you may not need a legal notice.
Step 3: Draft the Cheque Bounce Notice
If payment is not made, draft a formal notice that includes:
- Details of cheque (number, date, amount)
- Bank details
- Reason for dishonour
- Demand for payment
- 15-day deadline for payment
A lawyer can draft the notice to avoid mistakes.
Step 4: Send the Notice via Registered Post or Courier
Send the notice through:
- Registered Post A/D
- Speed Post
- Courier (with tracking)
- Email (optional)
Keep the receipt and tracking details as proof.
Step 5: Wait 15 Days for Payment
The drawer has 15 days from receiving the notice to:
- Pay the amount
- Respond with explanation
If they pay, the issue is resolved.
Step 6: File a Case If Payment Is Not Received
If the drawer does not respond or refuses to pay:
- You can file a legal complaint under Section 138
- The complaint must be filed within 30 days after the 15-day waiting period
Court may order:
- Payment of cheque amount
- Penalty
- Compensation
- imprisonment in extreme cases
Important Points to Remember
- Notice must be sent within 30 days of receiving bank’s return memo
- Drawer gets 15 days to pay
- Legal case must be filed within time limits
- Keep all documents as evidence
FAQ
Q1. Is a cheque bounce notice mandatory?
Yes. Without a legal notice, you cannot file a cheque bounce case in court.
Q2. Can I send the notice myself?
Yes, but getting it drafted by a lawyer is safer.
Q3. What if the drawer refuses to accept the notice?
Refusal is treated as valid service of notice. You may still proceed legally.
⚠ Disclaimer
This article provides general information about cheque bounce notices in India. Actual legal requirements, timelines, and procedures may vary depending on the case. Always consult a qualified legal professional before sending a cheque bounce notice or filing a court case.