A dishonoured cheque is a criminal offence under Section 138 of the Negotiable Instruments Act 1881 (NI Act). The payee has a statutory remedy - imprisonment up to 2 years and fine up to twice the cheque amount - but only if three strict time windows are followed exactly. Missing any window, even by a single day, permanently forecloses the Section 138 route.
Section 138 Ni Act: Unchanged By Bnss 2023
The BNSS replaced the CrPC for general criminal procedure but Section 138 NI Act continues under the Negotiable Instruments Act itself - completely unchanged. The Supreme Court in In Re: Expeditious Trial of Cases Under Section 138 of NI Act, 2021 directed High Courts to fast-track these cases. Gujarat High Court has implemented dedicated NI Act benches with monthly disposal targets, meaning Section 138 cases in Gujarat are now disposed of faster than general civil cases.
All Of The Following Must Be Simultaneously Satisfied:
Related internal resource: demand notices in India
- Cheque issued for a legally enforceable debt or liability (not a gift, returned security, or disputed obligation)
- Cheque presented within three months of its face date
- Returned unpaid for insufficient funds or exceeding bank arrangement
- Written demand notice dispatched to drawer within 30 days of receiving dishonour memo
- Drawer fails to pay within 15 days of receiving the notice
- Criminal complaint filed before Magistrate within one month of expiry of 15-day window
Window 1 - 30 Days: Send The Legal Notice
Opens: Date you physically receive the bank's dishonour memo (not the bank's processing date). Action: Dispatch the formal demand notice to the drawer. Method: RPAD (Registered Post with Acknowledgement Due) to the drawer's address. Also by courier and email to create multiple proof trails. If returned undelivered to the correct address: Courts treat this as constructive service. Do not resend to a different address without legal advice.
Window 2 - 15 Days: Drawer Must Pay In Full
Opens: Date the drawer receives (or is deemed to have received) the notice. If drawer pays in full: Section 138 is exhausted. No complaint can be filed. If partial or no payment: Offence is complete. Window 3 opens.
Window 3 - 1 Month: File The Criminal Complaint
Opens: Day after Window 2 closes. Action: File before the appropriate Magistrate within one month.
Worked Timeline - Real Dates
Cheque: Rs.5,00,000 from ABC Enterprises to XYZ Suppliers 1 June 2024 - Cheque presented. Returned unpaid. Bank prepares dishonour memo. 5 June 2024 - XYZ receives dishonour memo. Window 1 opens. Closes 4 July 2024. 26 June 2024 - XYZ dispatches legal notice by RPAD + email. Postal receipt retained. checked Within Window 1. 9 July 2024 - ABC receives notice (confirmed by postal acknowledgement card). Window 2 opens. Closes 23 July 2024. 23 July 2024 - Window 2 closes. ABC has not paid. Offence is complete. Window 3 opens. 7 August 2024 - XYZ files criminal complaint before JMFC. checked Within Window 3 (closes 23 August 2024).
What The Legal Notice Must Contain
The notice is a statutory prerequisite - not an informal letter or WhatsApp message. It must include:
- Full cheque particulars: number, date, drawee bank and branch, amount in figures and words
- Date of presentation to bank and date of dishonour
- Bank's stated reason for return (insufficient funds / exceeds arrangement)
- The legally enforceable debt for which the cheque was issued - courts scrutinise this carefully
- Unambiguous demand for payment of the full cheque amount within 15 days of receipt
- Statement that failure will result in criminal proceedings under Section 138 NI Act
Jurisdiction - Where To File
Related internal resource: where to file the complaint Following the NI Act Amendment Act 2015 (overruling Dashrath Rupsingh Rathod v. Maharashtra, 2014), the complaint can be filed before a Magistrate having jurisdiction where:
- The cheque was drawn (drawer's bank branch)
- The cheque was presented for payment (payee's bank branch)
- The cheque was returned by the drawee bank
- The payee carries on business or resides
Additional Drafting And SEO Notes For Surat Clients
A strong cheque bounce notice under section 138 ni act article should answer the searcher's immediate question and also prepare them for the next legal step. For Surat clients, that means explaining the document in plain English, identifying the local or Gujarat-specific checks, and warning against common template mistakes. The practical goal is to reduce uncertainty before a call: the reader should know what papers to gather, what dates to confirm, what amounts to calculate, what legal references may apply and what outcome to request. This approach also supports search visibility because the page naturally includes service intent, location intent, drafting intent, review intent and problem-solving language without keyword stuffing.
- Search intent covered: Cheque Bounce Notice under Section 138 NI Act help in Surat
- Local intent covered: Surat, Gujarat and India
- Service intent covered: drafting, review, redline and legal notice support
- Evidence intent covered: documents, chronology, proof and deadlines
When to obtain a review
A review is especially useful when…
- — You are about to sign, send, rely on or respond to this document.
- — The draft was copied from an old template or another state.
- — There is money, property, business control, statutory deadline or reputation risk involved.
- — You need Surat/Gujarat-specific drafting, review or negotiation support.
Legal information notice
This article is general legal information for India and Gujarat. It is not a substitute for advice on your specific facts, documents, limitation period, stamp duty position or court strategy.