A cheque bounce notice is sent when a cheque you issued is dishonoured by the bank (insufficient funds, signature mismatch, account closed, etc.). It is usually issued under Section 138 of the Negotiable Instruments Act, 1881.
Why you received it
The payee (the person you gave the cheque to) has to send a written demand notice within 30 days of the cheque being returned unpaid. The notice demands payment of the cheque amount.
Your deadline matters
From the date you receive the notice, you have 15 days to pay the amount. If you pay within 15 days, no offence is made out. If you do not, the payee can file a criminal complaint within the next 30 days.
Practical steps
- Note the dates. Mark the date you received the notice — your 15-day clock starts then.
- Check the cheque and the reason for return. Sometimes the dishonour is a bank error.
- Decide quickly. If the debt is genuine, paying within 15 days usually ends the matter.
- Keep proof of payment (bank transfer reference, acknowledgement).
- Respond in writing if you dispute the claim — consult an advocate before sending any reply.
What KanoonHQ can do
Upload the notice and get a plain-language explanation of exactly what it says, your deadline, and your options.