Section 138 cheque bounce notice and complaint checklist

Key time limits

Before the notice

• The cheque was issued for a legally enforceable debt or liability, with documents to show it.
• It was presented within its validity, and the return memo states the reason (for example, funds insufficient).
• The date the return memo was received is recorded; the 30 days run from this date.
• The drawer's correct address, and of each signatory or director where the drawer is a company.

Contents of the notice

• Cheque number, date, amount, bank and branch, and the date and reason of return.
• A demand for payment of the cheque amount within 15 days of receipt of the notice.
• Sent to the drawer and, for a company, to the company and the persons in charge.
• Sent by speed post or registered post, with proof of dispatch and tracking.

Before filing the complaint

• 15 days from the drawer's receipt of the notice have passed without payment.
• Filed within 1 month after those 15 days; if late, an application for condoning delay with reasons.
• Filed in the court with jurisdiction under Section 142(2): where the payee's bank branch is, for a cheque delivered for collection.
• Complainant's authorisation (board resolution or power of attorney) and the verification affidavit are ready.
• Original cheque, return memo, notice, postal proofs and the loan or debt documents are annexed.