Property Law July 13, 2026 4 min read

Cheque Bounce Legal Notice Kolkata | Section 138 NI Act

Step-by-step guide on cheque bounce legal notice under Section 138 NI Act. Process, limitation, format.

Cheque Bounce Legal Notice Kolkata 2025

Introduction – Cheque Bounce Under Section 138 NI Act

A cheque bounce, also known as dishonour of cheque, occurs when the bank refuses to honour the cheque due to insufficient funds, signature mismatch, account closed, or other reasons. Under Section 138 of the Negotiable Instruments Act, 1881, the dishonour of a cheque is a criminal offence punishable with imprisonment and fine. However, before a criminal complaint can be filed, the payee must follow a specific legal procedure including sending a legal notice to the drawer. In Kolkata, cheque bounce cases are filed before Magistrate Courts and are governed by the Negotiable Instruments Act and the Code of Criminal Procedure.

Legal Framework – Section 138 NI Act

Section 138 makes cheque dishonour a criminal offence when: (1) the cheque was drawn on a bank account maintained by the drawer, (2) the cheque was issued for a legally enforceable debt or liability, (3) the cheque was presented within its validity period (3 months), (4) the cheque was returned unpaid with a return memo stating the reason, (5) the payee issued a legal notice within 30 days of receiving the return memo, (6) the drawer failed to make payment within 15 days of receiving the notice, and (7) the complaint was filed within 30 days after the expiry of the 15-day notice period. Punishment includes imprisonment up to 2 years or fine up to twice the cheque amount, or both.

Cheque Bounce Legal Notice – Step by Step

Step 1: Receive the Cheque Return Memo

When a cheque bounces, the bank issues a return memo specifying the reason. Preserve this memo as crucial evidence.

Step 2: Consult a Lawyer

Consult a lawyer specialising in cheque bounce cases to verify the legal validity and advise on the procedure.

Step 3: Issue Legal Notice

Within 30 days of receiving the return memo, your lawyer sends a legal notice to the drawer containing: cheque details, fact of dishonour, reason for dishonour, demand for payment within 15 days, and warning of criminal prosecution if payment is not made. Send by registered post AD, speed post, and courier for proof of delivery.

Step 4: Wait for 15 Days

After sending the notice, wait 15 days from the date of receipt by the drawer. If payment is made, the matter is resolved. If not, proceed with criminal complaint.

Step 5: File Criminal Complaint

Within 30 days after the 15-day notice period expires, file a criminal complaint before the appropriate Magistrate Court in Kolkata under Section 200 CrPC.

Court Fees and Costs

Court fees are nominal (Rs. 500 to Rs. 5,000 based on cheque amount). Legal fees for notice drafting range from Rs. 2,000 to Rs. 5,000. Full case handling costs Rs. 15,000 to Rs. 50,000.

Procedure in Court

The Magistrate examines the complainant under Section 200 CrPC. If a prima facie case is found, summons is issued to the accused. The accused appears and the trial proceeds with evidence, cross-examination, arguments, and judgment. If convicted, the accused is sentenced to imprisonment and/or fine, with compensation to the complainant.

Conclusion – Act Promptly on Cheque Bounce Matters