Most of the time a cheque is given at the end of some discussion about money. Supplier has provided goods to him. Someone waited so long to get money back from his friend. Landlord expects the cheque for previous dues of house. Someone thinks that his cheque will clear his pending dues. When Bank rejects your cheque unpaid. It seems like a problem which can be solved between you and bank. But sometimes it goes beyond bank. As per Negotiable Instrument Act 1881 there is provision for filing legal notice of Section 138 notice and it becomes very crucial step before you can file case of cheque dishonor. When we talk about section 138 notice its not just telling that you owe me money I want it now. It has time limit and legal implication. If you delay in sending notice. Mention wrong amount of cheque. Describe liability wrongly or don't keep proper record of service can become a hassle. BK Singh advocate would suggest that your priority should be to keep the cheque and documents ready after bank rejects the cheque instead of arguing with the Drawer about payment again and again. Whenever someone from Delhi NCR area Ghaziabad Noida or anywhere from other city of india faces cheque dishonor. Apart from cheque you also need to look at invoices, receipts for loan amount, whatsapps, agreements, bank statements, transfer message or any form of promise of paying amount. In this article we have explained what is section 138 notice time limit for section 138 notice, what document you should have. Common mistakes and when you should take help of an advocate. When we say its important because the law says so when you send a legal notice its statutory demand which you are making against other party for the debt or liability he owes you. As per Negotiable Instrument Act you can't skip the notice and directly say that since my cheque got bounced its a case under section 138. It can become a big issue if you run a business. Salary can be affected stock purchase can halt. Taxes can go due, house rent etc. Its can be personal money that you gave to someone either for house or professional purposes or you could be lending money to someone. One thing to keep in mind when you are looking for a court is that under Negotiable Instrument Act you can find provision for section 142. If you want to know why this is important when someone bounces your cheque in Delhi or any where from NCR you should not consider only the address of Drawer to determine which court you should approach. BK Singh usually look at how the banking channel happened how your cheque was presented with relevant documents and service of notice. Legal notice under section 138 is a formal demand you make to the drawer who issued you a cheque after the bank rejects it under Section 138 of Negotiable Instrument Act. Basically its asking other party to pay you amount of cheque within the prescribed period. There should be clear mentioning of cheque in the legal notice. Reason of rejection. Amount you are demanding and some context of your transaction with him. So its clear what your looking to receive. Not every transaction will attract liability under section 138. There should be some debt or other liability for which the cheque was given to you and the facts of the case need to be evaluated accordingly. This is something BK Singh usually emphasizes on when the cheque needs to be viewed in conjunction with your transaction. If a person issues a cheque for the discharge of any debt or liability wholly or in part then that will attract section 138. One of the criteria that will apply here is that after bank tells you that the cheque got bounced you need to send him legal notice within 30 days and he needs to pay you within 15 days from the date he received the notice. He can be punished with term of imprisonment which may extend to two years or with fine which may extend to twice of amount of cheque or with both. As per Section 139 when someone hands over cheque to you its presumed that the cheque was handed over towards your debt or other liability unless proven otherwise. So although it states presumption you need to be well documented in case cheque becomes a dispute. As mentioned above the complaint must be filed by the payee in writing and within one month when the case of action took place under section 138 of Negotiable Instrument Act. There are certain guidelines that will help you figure out the correct court to approach in such a scenario. We would advise you to seek guidance of Advocate before approaching the court to make sure your complaint doesn't get rejected. Anybody who feels that his cheque was dishonored by bank and wants to take further steps under Negotiable Instrument act. Whether you are supplier who didn't receive your payment, Professional who sent cheque to pay him. Landlord who didn't receive payment. Or anyone who feels their cheque was bounced due to insufficient funds or any other reasons stated by bank. From companies to small business owners anyone who feels his cheque was dishonored and he has to deal with legal implications of the situation can seek guidance from advocate. Sometimes its just not a cheque you receive there can be other factors involved which will help your advocate build your case stronger. Like when a startup is receiving money from his customer for services rendered. The amount could differ if someone in Ghaziabad was trying to collect loan amount from his relative. BK Singh will understand why you received that cheque from the person. And how did he promise you to pay. If you require assistance in filing case of cheque bounce read our article on Cheque Bounce Lawyer Having the right documentation in place can save you from lots of hassle when you need to file case of cheque bounce. Some basic document you can start collecting are – You should be able to pull up all these documents and cross verify them. Advocate BK Singh can use all these documents to help figure out if your cheque amount matches with the amount of debt that the person owes you. You would require assistance from a lawyer if the amount on the cheque is big, limitation period is running out, if you are unable to establish liability on the drawer, cheque issued by company, multiple contradictory offers for settlement by parties involved. Cheque bounce lawyer advice can also come in handy if drawer is stating that the cheque was only issued for security purposes, has been paid and now is refusing to acknowledge. He may state that he did not enter into any transaction or the transaction was not what the amount of the cheque represents. If you are confused where to file your complaint you should seek help of a lawyer. Advocate BK Singh can help you check all details of the cheque, bank return memo, the liability you wish to establish on drawer, timeline of notices sent and documentary evidences that you might have before moving to next step. Seeking help early can prevent unnecessary complications than rectifying your notice. Cheque Bounce Lawyer can help you in matters relating to dishonored cheque, issuing notice under section 138, preparing a complaint against drawer, analysing document and issues related to settlement if applicable and representing you in Court subject to facts of the case. Mostly we look at what type of cheque it is and why it was issued by the drawer and whether document are available in support. Once you have engaged Advocate BK Singh, we can see all details of the cheque, bank return memo, transaction that took place and date of events to ensure you can issue a proper legal notice under section 138. If you already have received the bank memo and period of limitation is running then it would be better to show your document to a lawyer right away. We will make sure your demand is justified with proper reasons and we do not want to issue a threat letter which cannot be supported in Court. There can be situation where cheque has been issued by a company or if there are multiple invoices that have been paid through the cheque or you were expecting payment towards loan or settlement of dues. In these scenarios you might require help from an advocate. Cheque Bounce Lawer cannot assure you that you will win the case or recover money but can help you assess your chance of winning subject to document and facts available in your case. Section 138 legal notice is sent after the cheque bounces. Where a person has suffered loss by dishonor of cheque issued to him in discharge of any liability. This is a demand that you make to the drawer of the cheque to make payment. As per law you are required to make a demand in writing to the drawer of the cheque within 30 days of getting information from the bank that the cheque has been dishonored. After you receive the cheque bounce legal notice you have a period of 15 days to pay the amount due to you. After the lapse of 15 days cause of action will arise if you receive payment. Normally no. Once you receive the cheque bounce notice under section 138 you are given a period of 15 days to make payment. Only after you have provided him an opportunity to pay you will be able to go to court. Cause of action will arise if the drawer of the cheque fails to make payment after receiving your cheque bounce legal notice. As per section 142 you will have certain amount of time to file your complaint. Legally you don't require an advocate to send a notice as section 138 states that if the payee or the holder in due course of the cheque is not able to collect payment from the drawe he can send notice to the drawer of the cheque. However it is always advisable to get help of an advocate to check if your liability can be established on the drawer. Advocate BK Singh can help you in assessing such document if you wish. Whether a cheque is termed as security cheque doesn't end up answering the question of applicability of section 138 or not. This would again depend on the nature of liability which you had at that point of time when the cheque was made payable or presented in the bank etc. The circumstances and documentation will help in figuring this out. It can happen under section 141 read with other persons who were conducting the business at that time. Provided it fulfills certain statutory conditions and facts. There can always be a compromise and NI Act offence can be compounded to certain extend as per the law and stage of the proceeding. Make sure that the compromise amount is mentioned properly and not just given verbally. Cheque copy, cheque return memo, any kind of transaction paper, bank statement, bill/invoice/loan agreement if any. Correspondence with drawer if any, Notice if any sent to the drawer and important dates. Any chronology of events will always help in better understanding the case at hand during initial consultation. When a Section 138 Notice is served it isn't just a normal demand letter for paying amount due on a cheque. There is a certain timeline and set of requirements which have to be followed before filing a cheque bounce complaint. You must keep safe the cheques and bank statement of bounced cheque in your record if you are a payee and also when you receive a section 138 notice from your client if you are a drawer and want to dispute the claim. Limitation period may pass and cause heavy financial loss if these points are not followed correctly. For checking documents, drafting Section 138 Notice, filing cheque bounce complaint or settling cheque bounce complaints Advocate BK Singh is available to help. Advocate BK Singh is practicing as advocate in India who deals in cases related to cheque bounce payment recoveries and commercial dispute. Cases fall under Section 138, 139, 141 and 142 of the Negotiable Instrument Act 1881. He look into case pertaining to bounced cheques, demand notice, transaction details limitation period, settlement agreement and complaints filed. Through Cheque Bounce Lawyer you can consult him on cases regarding non payment of cheque and dispute over recovering payment. People from Delhi NCR and all over India can seek his help on cases regarding dishonor of cheques. Every case depends upon documents in hand bank trail and facts and circumstances of case at that stage.Section 138 Legal Notice After Cheque Dishonour: Complete Process
Why is Section 138 Legal Notice Important in India in 2026?
Quick Facts
What is Section 138 Legal Notice?
What Law Covers Cheque Bounce Notice in India?
Section 138 Negotiable Instrument Act 1881
Section 139 Presumption in case of Cheque bounce.
Section 142 Complaint should be filed by Payee or Holder in due course of action under Section 138.
When do you need help from Advocate?
How does Section 138 Notice Work?
Document to Keep After Cheque Got Rejected by Bank?
When to Approach a Cheque Bounce Lawyer?
How Cheque Bounce Lawyer Can help you in a Section 138 Notice?
FAQ's
1. What is Section 138 legal notice?
2. What is the last date I can send a cheque bounce notice?
3. What is the period of time I have to receive payment?
4. Can I send my complaint to court right away?
5. What happens after the notice has expired 15 days?
6. Do I require a lawyer to send my legal notice?
7. If a cheque is called security cheque what happens then?
8. Can company be prosecuted under Section 138?
9. Can the cheque bounce case be compromised after issuing notice?
10. What details to mention to advocate BK Singh for cheque bounce case?
Conclusion
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