Cheque Bounce cases under Section 138 of the Negotiable Instruments Act, 1881, are among the most commonly contested matters in Indian courts. However, despite their frequency, a large number of complaints fail because of small yet crucial procedural lapses—especially in the statutory demand notice issued before filing the complaint.

If the cheque amount mentioned in the demand notice is different from the actual cheque amount, the notice is invalid.

And when the notice is invalid, the entire 138 NI Act complaint collapses.

This judgment changes how complainants must draft notices and provides a powerful defence tool to accused persons.

Section 138 NI Act is a penal provision, meaning it creates criminal liability.

Before filing the complaint, the law requires:

1. Cheque must be presented within validity period.

2. If it bounces, the payee must send a written legal notice within 30 days.

3. The notice must demand the exact cheque amount.

4. The drawer gets 15 days to pay after receiving the notice.

If any of the above steps are done incorrectly →

the complaint becomes legally defective.

Thus, a simple mistake in drafting the notice can destroy the entire case.

The accused had issued a cheque of ₹1,00,00,000 (One Crore).

 When the cheque bounced, the complainant sent legal notices.

 But in both notices, the complainant demanded ₹2,00,00,000 (Two Crores).

 The accused argued that since the notice demanded double the amount, the notice was invalid.

 The Delhi High Court agreed and quashed the complaint.

 The complainant appealed before the Supreme Court.

 The Supreme Court upheld the quashing.

The Bench of Chief Justice B.R. Gavai & Justice N.V. Anjaria held:

 The law uses the words “the said amount” in Section 138(b).

 This “said amount” means the cheque amount only.

 Notice must specifically and precisely demand only that cheque amount.

 If the notice demands any other amount, whether higher or lower, it becomes illegal.

 Even a typographical error cannot be excused.

The Court stated:

“A notice demanding an amount different from the cheque amount is invalid in the eyes of law. Even if the cheque details are correct, the notice fails if the amount is wrong.”

This means —

There is no benefit of doubt, no flexible interpretation, no saving of notice.

  Requirement                                               Must It Match Exactly?                        Court's Position                                          

Cheque Amount in Notice                                  Yes, exactly same                             Mandatory (No exceptions) 

 Mention of interest / costs                               Allowed only after correct 

                                                                         cheque amount                                   Permitted if cheque amount is                       clearly specified first 

Typographical or clerical errors                          Not excused                                      Fatal to validity of notice                           

If you are issuing a legal notice:

Always mention only the cheque amount in the demand portion.

Additional amounts (interest, penalty, fees) may be mentioned separately and not mixed with cheque amount.

Do not use copy-paste notice formats.

Have your notice drafted or vetted by a Cheque Bounce Specialist Advocate.

Failure to do so can lead to:

 Complaint being dismissed,

 Accused being discharged, and

 Valuable time and legal expense wasted.

Practical Impact for Accused / Defense

If you have received a cheque bounce notice and:

The amount demanded in notice ≠ Cheque amount

Then you may be entitled to:

Quashing of Complaint under Section 482 Cr.P.C.

Discharge Application before Magistrate

Avoidance of criminal liability

This judgment provides strong and clear defence leverage.

In my experience, many cases fail not because of facts but because of procedural errors.

A well-drafted legal notice is not a formality—it is the foundation of the entire prosecution.

This judgment is a reminder that:

Law rewards precision and preparation.

Whether you are filing or defending a cheque bounce case, strategy matters.

Every word matters.

Every number matters.

 Step         Requirement                                                            Legal Importance                    

 1     Cheque must be issued for a legal debt                        Establishes liability               

 2     Cheque is presented to the bank                                  Triggering event                    

 3     Cheque is dishonoured                                                 Cause of action arises              

 4     Payee sends a demand notice within 30 days              Mandatory statutory requirement 

 5     The notice must demand payment of the same

cheque amount        Core ingredient of the offence  

 6     Drawer fails to pay within 15 days                                  Offence is complete                 

This judgment protects both:

Genuine Payees, by guiding them to draft notices correctly

Accused persons, from exaggerated, inflated, or misleading claims

It also sends a message that:

Cheque bounce cases are not civil negotiations — they are criminal proceedings that require accuracy and adherence to procedural law.

Mistake                                        Example                                     Result           

 Adding expected interest

 into the main amount               Cheque ₹1,00,000,                Notice demands ₹1,20,000  

  Case fails       

Mis-typing cheque amount        Cheque ₹2,50,000,                Notice states ₹25,000     

   Notice invalid   

 Rounding off figures                  Cheque ₹1,49,500,                Notice demands ₹1,50,000  

   Not maintainable 

Therefore, professional drafting is essential.

Being a practicing advocate handling Cheque Bounce/Section 138 NI Act matters across:

 Rohini Courts, Tis Hazari,  Dwarka, Karkardooma, Saket Courts, Delhi High Court

    …I ensure that every legal notice and complaint is drafted strategically, with zero clerical or legal errors, so your case stands                   strong in court.

I assist with:

 Drafting legally correct Demand Notices

 Filing Section 138 Complaint

 Defence in Cheque Bounce Cases

 Negotiation & Settlement Strategy

 Execution of Court Decrees & Recovery Orders

If your cheque has bounced, or if you have received a legal notice – take timely action.

 Delay can weaken your case.

 Call / WhatsApp: [8789006633]

 Office: Rohini Court Complex, Delhi

Advocate Akanksha Roy – Cheque Bounce Specialist Lawyer