Cheque Bounce Legal Notice (Section 138) Format & Template

What is a Cheque Bounce Legal Notice (Section 138)?

When to use it

• A cheque given to you for a debt or liability has been returned unpaid.
• The bank’s return memo says “funds insufficient” or “exceeds arrangement” (other reasons, such as “payment stopped”, can also qualify).
• You are still within 30 days of receiving the return memo.

What you'll need

Keep these details ready — the form asks for them in this order.

How it works

1. 1

   Enter payee and drawer

   Your details and the drawer’s name and address.

2. 2

   Enter the cheque and return details

   Cheque number, amount, bank, cheque date, and the date and reason on the return memo.

3. 3

   Preview, pay and download

   Check every date, pay ₹100 and download.

4. 4

   Sign and send with proof of delivery

   Sign it and send it by registered post AD or speed post (email as well, if you have the address), and keep the receipts and tracking record.

How to make it legally valid

• Sent within 30 days of receiving the return memo from your bank.
• Demands payment of the cheque amount, giving the drawer 15 days from receipt of the notice.
• Addressed to the drawer’s correct address, with proof of dispatch and delivery kept.
• The cheque must have been given for a legally enforceable debt or liability.

After you sign it

Signing is not the last step for this document. These are what most authorities ask to see next.

1. 1

   Wait 15 days from delivery

   Count from the date the drawer received (or refused) the notice.

2. 2

   File the complaint in time

   If unpaid, file a complaint before the magistrate within one month after the 15 days expire — in the court with jurisdiction over your bank branch.

Common mistakes to avoid

• Sending the notice after the 30-day window.
• Demanding a different amount from the cheque amount.
• Filing the complaint before the 15-day period has ended.
• Keeping no proof of when the notice was delivered.