What this format is for
A cheque-bounce demand notice is a statutory step before filing a complaint under Section 138 of the Negotiable Instruments Act. The payee or holder in due course must act within the prescribed timeline after receiving information from the bank about dishonour.
The notice should connect the cheque to a legally enforceable debt or liability, reproduce the material cheque and return-memo details, and demand payment of the cheque amount. Additional claims may be stated carefully, but the statutory demand must remain clear.
Primary legal basis
Sections 138 and 142 of the Negotiable Instruments Act, 1881, read with applicable amendments and binding decisions.
When to use it
- A cheque presented within its validity period has been returned unpaid.
- The claimant is the payee or holder in due course and can establish the underlying liability.
- The statutory notice period has not expired and reliable service evidence can be created.
Information and documents to collect
- Drawer and payee names and complete service addresses.
- Cheque number, date, amount, bank, branch and account particulars available on the instrument.
- Date of presentation and the bank return memo with dishonour reason.
- Invoice, loan, settlement or transaction facts showing the debt or liability.
- Date on which bank information of dishonour was received.
- Dispatch mode, tracking details and any electronic service used in addition.
Free format preview
Use this as an organization checklist. Replace every bracketed field, delete inapplicable language and adapt the sequence to the prescribed form of the court or tribunal.
- 01Sender, advocate and addressee particulars
- 02Underlying transaction and enforceable liability
- 03Cheque number, date, amount and bank details
- 04Presentation and return-memo particulars
- 05Clear demand for payment of the cheque amount
- 06Statutory payment period and consequence of default
- 07Reservation of rights, date and advocate signature
How to prepare and file it
- 1Calculate the notice deadline from receipt of bank information; do not rely on memory.
- 2Verify the cheque, return memo, account of liability and the intended recipient's address.
- 3Draft an unequivocal demand for the cheque amount and state the statutory payment period.
- 4Send the notice using a trackable method and preserve the notice, receipt, tracking and returned envelope.
- 5Record the delivery/refusal/unclaimed event and calculate the cause-of-action date carefully.
- 6If payment is not made, prepare the complaint within limitation with the required originals and affidavit/evidence.
Common mistakes to avoid
- Sending the notice after the statutory notice period has expired.
- Demanding only a larger composite amount without clearly demanding the cheque amount.
- Using an incomplete or obsolete address without preserving delivery evidence.
- Mismatch between cheque details, return memo, notice and proposed complaint.
- Miscalculating the payment window or complaint limitation after service.
Frequently asked questions
How quickly must a cheque-bounce notice be sent?
Section 138 prescribes a notice within 30 days of receiving bank information about dishonour. Calculate from the actual record and verify the current statutory text.
How long does the drawer get to pay?
The drawer generally has 15 days from receipt of the statutory notice to make payment of the cheque amount.
Is email service alone sufficient?
Service evidence is fact-sensitive. Use a reliable trackable physical mode and treat electronic service as additional support unless an advocate advises otherwise for the case.
Official sources to verify
Check the current statutory text and the website or filing portal of the specific court before relying on any downloaded format.