A cheque issued by R in favour of S is returned unpaid by the bank with the memo 'insufficient funds'. Under Section 138 of the Negotiable Instruments Act, 1881, S must give notice of dishonour to R -

Section 138 of the Negotiable Instruments Act, 1881 makes the drawer of a dishonoured cheque liable only where the payee or holder in due course demands payment by a notice in writing delivered within thirty days of the receipt of information from the bank regarding the return of the cheque as unpaid (clause (b)). The drawer then commits the offence (clause (c)) if the amount is not paid within fifteen days of the receipt of the notice, and a complaint must be filed within one month of the expiry of that fifteen-day period under Section 142. The punishment may extend to imprisonment of two years or a fine of up to twice the cheque amount, or both. Options stating seven, fifteen or forty-five days misstate the statutory notice period, fifteen days being the payment window, not the notice period.