- +91 80768 85539
- info@expertvuw.com
- Pan-India service available.
Home / Legal Notices / Cheque Bounce Notice (Section 138)
Last updated: 2 October 2026
A dishonoured cheque gives you a strong legal remedy — but only if strict deadlines are met. Expertvuw’s team checks your documents and timeline and coordinates the demand notice and, if needed, the complaint, through independent advocates.
Under section 138 of the Negotiable Instruments Act, 1881, dishonour of a cheque issued to discharge a legally enforceable debt or liability — for insufficient funds or because it exceeds the arrangement with the bank — is an offence, punishable with imprisonment up to two years and/or a fine up to twice the cheque amount.
The timeline is strict. The payee must send a written demand notice within 30 days of receiving the bank’s dishonour memo. The drawer then has 15 days from receiving the notice to pay. If payment is not made, the complaint must be filed before the competent Magistrate within one month after those 15 days end; a complaint filed before the 15 days expire is not maintainable. Delay in filing can be condoned only for sufficient cause.
The cheque must have been presented within its validity (generally three months from its date). Courts can order interim compensation of up to 20% of the cheque amount under section 143A. In September 2025 the Supreme Court issued procedural guidelines to speed up cheque bounce cases, including electronic service of summons and early payment and compounding options.
Basis: Negotiable Instruments Act, 1881 (sections 138, 139, 141, 142, 143A, 147); Supreme Court guidelines on section 138 cases (2025). Last updated: 27 September 2026.
Within the cheque's validity, generally three months.
Within 30 days of receiving the dishonour memo.
15 days from the drawer receiving the notice.
Within one month after the 15 days end.
Up to two years' imprisonment and/or fine up to twice the amount.
Up to 20% of the cheque amount under section 143A.
Most section 138 failures are about timing and paperwork.
o
o
o
Cheque bounce matters connect with these services.
Recovering unpaid invoices.
Issuing legal notices.
Replying to a cheque bounce notice.
IBC demand notices.
Verify dates and documents.
Advocate issues notice within 30 days.
15 days for payment.
File within the next month if unpaid.
Case proceeds before the Magistrate.
Compounding possible at any stage.
Track the deadlines precisely.
e
c
i
e
Share your query and our team will reply during business hours.
Within 30 days of receiving the bank’s dishonour memo.
15 days from receiving the notice.
Within one month after the 15-day period ends, not before.
Imprisonment up to two years and/or a fine up to twice the cheque amount.
Yes. Offences under section 138 are compoundable, and courts encourage early settlement.
ACS – Director, Expertvuw Management Pvt Ltd
Documents are drafted by Expertvuw’s team for your review. Legal notices are issued, and representation before courts, tribunals and consumer commissions is made, by independent advocates. Expertvuw is a corporate services company, not a law firm.