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Cheque Bounce Notice – An Overview

A Cheque Bounce Notice is a formal legal notice sent by the payee to the drawer of the cheque when the cheque is dishonored (bounced) due to insufficient funds, account closure, or other reasons. It is the first mandatory legal step under Section 138 of the Negotiable Instruments Act, 1881 to demand payment before initiating criminal proceedings.

Mandatory Legal Step: A Cheque Bounce Notice must be served within 30 days from the date of cheque return to initiate legal action.
Legal Protection: Protects the payee’s right to recover the due amount through civil and criminal remedies.
Actionable Under Law: If payment is not made within 15 days of notice, criminal proceedings under Section 138 NI Act can be filed.

Documents Required for Cheque Bounce Notice

Copy of the Bounced Cheque
Cheque Return Memo from the Bank
Copy of Agreement/Invoice (Optional, if exists)
Sender’s Address and Identity Proof
Recipient (Drawer) Details and Address

Cheque Bounce Notice Timeline

The notice must be sent within 30 days of cheque dishonor. The drawer gets 15 days from receiving the notice to make payment. If no payment is made, legal action can be initiated after the expiry of 15 days.

Frequently Asked Questions

What is a Cheque Bounce Notice?: A Cheque Bounce Notice is a formal legal demand sent by the payee when a cheque gets dishonored, requiring the drawer to make payment within 15 days as per Section 138 of the Negotiable Instruments Act, 1881.
Is it mandatory to send a notice before filing a cheque bounce case?: Yes, serving a written notice within 30 days of cheque return is mandatory before filing criminal proceedings under Section 138 NI Act.
What is the time limit for cheque bounce case after notice?: If the drawer fails to pay within 15 days of notice, the payee must file the complaint in court within 30 days from the expiry of the notice period.