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Cheque Bounce Notice Format

  • Writer: Lead India
    Lead India
  • Aug 7, 2023
  • 3 min read

The cheque might bounce for a variety of reasons, including an incorrect date, a mismatch of payment amount figures and words, a mismatch of signature, or a damaged cheque. However, these are minor causes of cheque bounce, and hence another cheque can be written by the drawer to correct the error in the cheque and pay the amount to the payee.

When a cheque is brought to a bank for payment and it bounces, the bank will return the cheque along with a return memo explaining why it was returned. If the bank rejects the check owing to inadequate funds, the drawer may be served with a notice, and legal action may be taken against him.



When a cheque is returned by the bank owing to insufficient funds, the payee should issue a legal notice to the drawer of the cheque requesting payment. Cheque bounce is an infraction in India under Section 138 of the Negotiable Instruments Act of 1881. The legal notice informs the drawer of the cheque that the amount specified in the cheque must be paid or else legal action will be taken against him in the appropriate court under the Negotiable Instruments Act.

Cheque Bounce Notice Contents

The following are the contents of the Court Notice:

  • The name and address of the cheque's drawer

  • The payee's name and address.

  • The details of the check that was handed to the bank for payment

  • The cheque number, date, and amount are all listed.

  • The date the check was returned.

  • The reason for the cheque's bounce

  • Request a quick payment arrangement for the amount.

  • Section 138 of the Negotiable Instruments Act is referred to.

Legal provisions:

  • Cheque bounce for insufficient cash is an infraction punishable by imprisonment under Section 138 of the Negotiable Instruments Act. It states that if a person writes a cheque on an account he maintains for the payment of money to another person and it is returned unpaid by the bank due to insufficient funds to honour the cheque, the drawer commits an infraction. The individual must write the cheque to discharge any legally enforceable obligation or duty. The bank must return the check because the amount of money on the drawer's account is insufficient or exceeds the amount agreed to be paid from the drawer's account by an agreement signed with the bank. For the offense of cheque bounce, the drawer faces imprisonment for a term not exceeding two years or a fine of up to double the value of the cheque, or both.

  • Section 144 of the Negotiable Instruments Act states that if a cheque issued by a corporation bounces, then every person in control and accountable for the conduct of the company's business at the time the act was committed is guilty of an offense. When the drawer of the cheque is a firm, this clause states that a cheque bounce for insufficient cash is a crime. When the drawer of the failed cheque is a company, everyone in control and accountable for the firm's business is guilty of the offense of cheque bounce and can be penalized appropriately. When a company commits a cheque bounce offense and it is proven that the offense was committed with the consent, negligence, or convenience of the company's director, secretary, manager, or other officers, such persons will be deemed guilty and liable to be punished accordingly.

Cheque Bounce Legal Action

When a cheque bounces, the first step is to send a notification to the drawer and request that he pay the amount. If he does not comply with the notification, he may face legal consequences. The following requirements must be met in order to initiate legal action and file a suit in court against the drawer:

  • The payee must present the check within three months of its issuance date.

  • Due to inadequate funds, the bank should reject the cheque.

  • The payee makes a claim for payment of the cheque amount by mailing a cheque bounce notification to the drawer.

  • The cheque bounce notification must be provided within thirty days of the bank receiving information about the return of the cheque.

  • The drawer does not pay the cheque amount to the payee within fifteen days after receiving the cheque bounce notification.

For sending a lawyer notice, you can contact Lead India. Lead India provides internet data, legal services, and free legal advice online. In this circumstance, asking a legal question and talk to a lawyer is the best line of action.


Call Us: +91–8800788535

Email: care@leadindia.law


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