Step 1: Get the bank return memo — that's Day Zero
The 30-day clock starts from the date you receive the bank's cheque return memo — the written or electronic notice that the cheque was dishonoured (commonly for insufficient funds). Don't delay: missing the 30-day window to send a notice means you lose the right to proceed under Section 138 entirely.
Step 2: Send the demand notice within 30 days
The notice goes to the drawer (the person who gave you the cheque) and must state:
- That the cheque was returned/dishonoured by the bank
- The exact cheque number, date, and amount
- A demand for full payment within 15 days of receipt
- A warning that failure to pay will lead to criminal proceedings under Section 138
Checklist to make the notice legally binding
- Demand the full cheque amount — a partial demand weakens the notice
- Send by Registered Post with Acknowledgement Due (RPAD) — this is mandatory
- Also send by Speed Post or courier as a backup
- Keep the postal receipt and the signed AD card — they prove the notice was served
- Note the delivery date carefully — the drawer's 15 days start from the date they receive it, not the date you send it
- If delivery is refused or the address is incorrect, consult a lawyer — deemed-service rules apply
Step 3: Wait 15 days for payment
If the drawer pays the full amount within 15 days of receiving your notice, no criminal offence has been committed and the matter ends there. If they don't pay — or ignore you — you now have 30 days to file a criminal complaint.
Step 4: File the Magistrate complaint within 30 days
File a criminal complaint under Section 138 before the Judicial Magistrate (First Class) in the area where your bank is located — i.e. where the cheque was presented. Attach the cheque, the bank return memo, the demand notice, proof of delivery, and your affidavit. No advocate is mandatory; you can appear in person.
What happens after you file
The court summons the accused. Under Section 143A, the court can order the accused to pay up to 20% of the cheque amount as interim compensation while the trial is ongoing — before any final judgment. On conviction, the punishment is imprisonment of up to 2 years, or a fine of up to twice the cheque amount, or both.
Documents you'll need
- The original bounced cheque (or its copy)
- The bank's return memo stating the reason for dishonour
- Your bank statement showing the cheque was presented
- Any agreement, invoice, or document showing why the cheque was issued
- Proof of notice delivery — courier receipt, postal acknowledgement, or email delivery confirmation