Sec 138 NI Act Sec 420 IPC Notice Template

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Title: Notice under Section 138 of the Negotiable Instruments Act & Sec. 420 of the Indian Penal Code Format

Facing a bounced cheque and need to send a legal notice swiftly? Download our professional Notice under Section 138 of the Negotiable Instruments Act & Sec. 420 of the Indian Penal Code format in PDF or Word for free download in India.

What is a Notice under Section 138 NI Act and Section 420 IPC?

A Notice under Section 138 of the Negotiable Instruments Act, 1881 (NI Act), combined with Section 420 of the Indian Penal Code (IPC), is a crucial legal document sent to the drawer of a dishonoured cheque. This notice demands payment of the cheque amount within 15 days, serving as a pre-requisite before filing a criminal complaint. Section 138 NI Act addresses cheque bounce cases due to insufficient funds or other reasons, while Section 420 IPC invokes charges of cheating if there's intent to defraud. In India, this notice format is widely used in business transactions to recover dues efficiently through courts.

Why is it Important?

Sending this notice is mandatory under the NI Act. Failure to issue it within 30 days of cheque dishonour bars you from filing a case. It gives the defaulter a final chance to pay, potentially avoiding litigation. Invoking Section 420 IPC strengthens your claim by alleging criminal intent, increasing pressure for settlement. This ready-to-use legal template ensures compliance with court requirements, saving time and reducing errors in high-stake financial disputes.

Key Elements of the Notice under Section 138 NI Act and Section 420 IPC Format

Our customizable notice format includes all essential sections:

Sender and Recipient Details: Full addresses, contact information.
Cheque Particulars: Number, date, amount, bank details, and dishonour reason.
Demand Clause: Clear 15-day payment demand under Section 138 NI Act.
Allegation of Cheating: Reference to Section 420 IPC for fraudulent intent.
Consequences Warning: Notice of legal action if unpaid.
Verification and Signature: Affidavit-style declaration.

This structure aligns with Indian legal standards, making it perfect for magistrates' courts.

Who Should Use This Notice Format?

Businesses and traders dealing with cheque payments.
Lenders or creditors facing bounced cheques.
Individuals in civil or commercial disputes.
SMEs recovering outstanding payments in India.

Common use cases include supplier-vendor disputes, loan repayments, and service invoices. Whether in Mumbai, Delhi, or any part of India, this format is versatile for criminal and civil proceedings.

Download Your Notice under Section 138 NI Act and Section 420 IPC Today!

Get instant access to our free downloadable Notice under Section 138 of the Negotiable Instruments Act & Sec. 420 of the Indian Penal Code sample in editable Word or PDF format. Customize it with AI tools or legal help for your specific case. Ready-to-use and compliant with Indian laws – start recovery proceedings confidently!

Important Note

While this legal template is designed for ease, always consult a lawyer for personalization to fit your facts. It's not a substitute for professional legal advice. Explore related formats like Legal Notice for Cheque Bounce, Section 138 Complaint Format, or other NI Act documents for comprehensive support. Keywords: notice format India, Section 138 notice PDF, cheque bounce legal notice sample, customizable NI Act template.

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT _ SEC. 420 OF THE INDIAN PENAL CODE

Notice u/s 138 of the negotiable instruments act & sec. 420 of the Indian penal code

Advocate

Address

Party's Name

Address

Dated

Notice (by registered a.d.)

Smt?????????????????

Madam,

Under instructions from and on behalf of my client, Shri ???????????? Mumbai ????, I have to address you as follows :

1. That on account of some acquaintance of my client with your husband, Shri ???.., my client has had occasions to know and meet you.

2. That since you have been running business under the name and style as Everest Tours & Travels, you proposed to expand the said business.

3. That for the said purpose of the expansion of your business, in December 2009, you were in need of more finance, and through the good offices of your husband, you made my client to pay you an amount of Rs. 40,000/-.

4. That taking into consideration the relationship between my client and your husband, my client paid to you an amount of Rs. 40,000/ - in cash, as detailed below:

Rs. 40,000/-

5. That at the time of the payment of the said amounts by my client, you had promised him that the amount paid by my client would be repaid and refunded to him within a short time, say within a year or so.

6. That in spite of your promise to return the said amount unto my client, you failed to do so, and at the time of every demand to you, you have only gone to postpone the promises.

7. That with a view to making the repayment of the said amount unto
my client, you have finally issued in his favour a cheque bearing No. 048060, dated 15.7.200.., for Rs. 40,000/-, drawn on the Vidya Sahakari Bank Limited, Aundh Road Branch, Mumbai..

8. That when my client presented the said cheque to his bank, Cosmos Cooperative Bank Limited, Laxmi Road Branch, Mumbai, on 15.7.2009, the said Bank returned the said cheque with remarks "Refer to drawer".

9. That in the mean time, your husband had already contacted my client with a request to re-present the cheque to the Bank, saying that there was no necessary balance in your account and that immediate arrangements would be made so as to clear the cheque in favour of my client.

10. That accordingly my client again presented the said cheque to the Bank for encashment on 25.7.2009, but the said cheque was dishonoured.

11. That from the total behaviour on your part with respect to the said transaction, my client has come to a tacit conclusion that when the Bank of my client has returned the said cheque to my client, while issuing the said cheque, you already had dishonest intention to cheat my client of the said amount, and it was also a case of "Dishonoured for insufficient balance".

12. That, thus, the cheque which was issued by you in discharge of your liability has been dishonoured for the reason of insufficiency of funds.

13. That since then, my client has been making efforts to contact you personally, but you could not be available anytime anywhere, and hence, my client has come to the final conclusion that you have some ulterior motive to the effect that you are not sincere in making the repayment of the amount taken by you from my client.

14. That from the total behaviour on your part, my client has drawn a clear inference that you have done so with a view to deceiving and cheating my client, and you did not bother either for the dishonour
of cheque or then making yourself available immediately.

15. That it also appears that your intentions were not good when you issued the said cheque for the amount which you did not have in your account, and since you knew it very well, you have tried to commit not only a civil breach but also a criminal offence within the provision, meaning and interpretation of civil as well as criminal
law.

16. That since the said cheque has been dishonoured for the reason of "Insufficiency of funds", you may be held liable civilly as well as criminally particularly under section 420 of the Indian Penal Code, section 138 of the Negotiable Instruments Act and provisions of the Code of Civil Procedure.

17. That under the circumstances, you are hereby called upon to pay unto my client an amount of Rs. 40,000/- (Rupees Forty Thousand only) together with interest @ 15% per annum, WITHIN FIFTEEN DAYS from the receipt of this notice, failing which my client will be constrained to take against you an appropriate legal action including filing of a criminal complaint, which please note. That since your illegal behaviour has necessitated the issue of this notice, you are hereby charged with its costs, i.e. Rs. 2,100/-, which also please further note.

Yours faithfully,

ADVOCATE.

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Important Guidelines

A "Notice under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code" is typically used in India when a person wishes to initiate legal action against someone for dishonoring a cheque due to insufficient funds. It is a crucial step in pursuing a criminal case for cheque bounce. Here's a brief guideline on its use and

Common Mistakes to Avoid:

Identify the Default: Determine that a cheque issued by the accused has bounced due to insufficient funds, and it qualifies as an offense under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code.

Draft a Legal Notice: Prepare a formal legal notice addressing the accused. The notice should state the facts, demand the amount due, and provide a time frame (usually 15 days) for payment.

Serve the Notice: Send the notice via registered post with acknowledgment due or through a legal representative to ensure proper service. Keep copies and postal receipts as evidence.

Common Mistakes to Avoid:

Incomplete or Incorrect Notice: Ensure the notice is complete, accurate, and adheres to the legal requirements, as an incorrect notice can weaken your case.

Missed Deadline: Serve the notice within the stipulated time frame of six months from the date of the cheque bounce to maintain legal validity.

Lack of Evidence: Gather proof of service, bank records, and documents related to the transaction to support your case in court.

Unwarranted Threats: Maintain a professional and non-threatening tone in the notice to avoid potential counterclaims for harassment.

Non-compliance with Legal Procedures: Consult with a legal expert or attorney to ensure compliance with all legal procedures and requirements.

Sending a proper notice is a critical first step in a cheque bounce case. Consulting with a legal professional or advocate with expertise in such matters is highly recommended to navigate the legal process effectively.

Frequently asked questions

What is the purpose of the Notice under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code?→

This legal notice in India demands payment within 15 days for a dishonoured cheque under Sec 138 NI Act and invokes criminal liability for cheating under Sec 420 IPC, serving as a prerequisite before filing a complaint.

Is this notice legally valid in India?→

Yes, this notice template complies with Indian legal requirements under NI Act and IPC, but it is advisable to have it reviewed and customized by a lawyer for your specific case.

Do I need to pay stamp duty on this notice?→

Legal notices under Sec 138 NI Act are typically sent on plain paper via registered post or speed post in India; no stamp duty is required, though some states may have nominal e-stamping rules—check locally.

In what format can I download this notice?→

The notice is available for download in editable Word (.docx) and printable PDF formats, suitable for immediate use or customization.

Can I edit or customize this notice template?→

Yes, the Word version is fully customizable—edit details like names, amounts, dates, and cheque details to suit your case before sending.

Who should use this notice and when?→

Use this by the payee/complainant in India when a cheque bounces due to insufficient funds or stops payment, combined with cheating allegations, within 30 days of dishonour report.

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT _ SEC. 420 OF THE INDIAN PENAL CODE

Notice u/s 138 of the negotiable instruments act & sec. 420 of the Indian penal code

Advocate

Address

Party's Name

Address

Dated

Notice (by registered a.d.)

Smt?????????????????

Madam,

Under instructions from and on behalf of my client, Shri ???????????? Mumbai ????, I have to address you as follows :

1. That on account of some acquaintance of my client with your husband, Shri ???.., my client has had occasions to know and meet you.

2. That since you have been running business under the name and style as Everest Tours & Travels, you proposed to expand the said business.

4. That taking into consideration the relationship between my client and your husband, my client paid to you an amount of Rs. 40,000/ - in cash, as detailed below:

Rs. 40,000/-

6. That in spite of your promise to return the said amount unto my client, you failed to do so, and at the time of every demand to you, you have only gone to postpone the promises.

10. That accordingly my client again presented the said cheque to the Bank for encashment on 25.7.2009, but the said cheque was dishonoured.

12. That, thus, the cheque which was issued by you in discharge of your liability has been dishonoured for the reason of insufficiency of funds.

Yours faithfully,

ADVOCATE.

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