Sec 138 NI Act & 420 IPC Notice Template

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NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC Format

Facing a cheque bounce issue with elements of cheating? Get our professionally drafted NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC Format ready for free download in India. This customizable legal template in PDF or Word format ensures you meet court requirements under the Negotiable Instruments Act (NI Act) and Indian Penal Code (IPC), empowering you to demand payment swiftly and initiate legal action if needed.

Why is NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC Format Important?

In India, a dishonoured cheque not only triggers civil remedies but can also involve criminal liability. Section 138 of the NI Act makes cheque bounce a punishable offence, requiring the payee to first serve a legal notice demanding payment within 15-30 days. Combining this with Section 420 of the IPC addresses cheating and dishonestly inducing delivery of property, strengthening your case against fraudulent drawers.

This notice format is crucial because it serves as a prerequisite for filing a criminal complaint. Without it, your case under Section 138 NI Act may be dismissed. By invoking Section 420 IPC, you highlight the fraudulent intent, potentially leading to severe penalties like imprisonment up to 7 years. Businesses, individuals, and creditors in India rely on this ready-to-use template to protect their financial interests efficiently.

Key Elements of the NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC Format

Our legal template includes all essential sections to make it compliant and effective:

Sender and Recipient Details: Full address, contact information of the complainant (payee) and accused (drawer).
Facts of the Transaction: Clear description of the underlying agreement, purpose of issuing the cheque, and date of issuance.
Cheque Details: Cheque number, date, amount, bank name, and account details.
Dishonour Particulars: Date of presentation, reason for bounce (e.g., insufficient funds), and bank memo.
Demand Clause: Specific demand for payment of the cheque amount plus interest and costs within 15 days.
Legal Consequences: Warning of prosecution under Section 138 NI Act and Section 420 IPC if payment is not made.
Verification and Signature: Affidavit-style declaration by the sender.

This structure ensures the notice is comprehensive, professional, and court-ready, saving you time and legal drafting costs.

Who Should Use This NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC Sample?

Business Owners and Traders: Ideal for recovering dues from suppliers, customers, or partners who issue bounced cheques with deceitful intent.
Lenders and Financiers: Essential for loan recoveries where cheques are given as security.
Individuals: Useful in personal transactions like property deals or rentals involving dishonoured cheques.

Common use cases include commercial disputes, real estate transactions, and trade debts across civil and criminal courts in India.

Download Your Customizable Template Now

Don't delay justice—download the free NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC Format in PDF or Word today. Customize it instantly using our AI tools or seek legal help for specific tweaks. It's fully editable, ready to use, and optimized for Indian courts.

Important Note on Customization and Legal Advice

While this legal template is designed by experts to meet standard requirements, tailor it to your facts. Always consult a qualified lawyer before sending the notice or filing a complaint, as laws may vary by jurisdiction. For related documents, explore our Section 138 NI Act complaint format, legal notice templates, or IPC Section 420 formats. Protect your rights with our trusted, SEO-optimized legal resources in India.

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC

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

Guideline for Drafting Notice under Section 138 of the Negotiable Instruments Act and Section 420 of IPC

Usage: This notice is used in India when a person wishes to notify a party who issued a dishonored check, thereby committing an offense under Section 138 of the Negotiable Instruments Act and potentially under Section 420 of the Indian Penal Code (IPC). The notice serves as a legal precursor to initiating legal action for check bouncing and fraud.

Common Mistakes to Avoid:

Incomplete Contact Information: Ensure that the full name and contact details of both parties (sender and receiver) are clearly mentioned in the notice.

Lack of Specifics: Clearly state the facts surrounding the dishonored check, including the check number, date, amount, and the bank on which it was drawn.

Ambiguity in Intent: Explicitly mention the legal consequences the recipient may face if the matter is not resolved, including potential legal action.

Improper Legal References: Accurately reference the relevant legal sections (Section 138 of the Negotiable Instruments Act and Section 420 of IPC) and relevant case law, if applicable.

Failure to Set a Deadline: Specify a reasonable timeframe (usually 15 days) for the recipient to settle the matter and make payment.

Inadequate Documentation: Maintain copies of all correspondence, including the notice, postal receipts, and records of delivery, for future reference in legal proceedings.

Neglecting Legal Counsel: Consult with a legal professional to ensure the notice complies with the law and is admissible in court.

Using Offensive Language: Maintain a professional and respectful tone in the notice to avoid potential counterclaims for defamation or harassment.

Inaccuracy in Facts: Verify all information provided in the notice for accuracy, as inaccuracies can weaken your legal position.

Failure to Follow-Up: If the recipient does not respond or comply within the specified timeframe, consult your legal counsel promptly to initiate legal proceedings as necessary.

By adhering to these guidelines and avoiding common mistakes, individuals can effectively draft a Notice under Section 138 of the Negotiable Instruments Act and Section 420 of IPC, which can be a crucial step in resolving dishonored check disputes and pursuing legal action when necessary.

Frequently asked questions

What is a Notice under Section 138 of the Negotiable Instruments Act and Section 420 of IPC?→

This legal notice is sent by the payee to the drawer when a cheque bounces due to insufficient funds (Section 138 NI Act) and involves allegations of cheating (Section 420 IPC). It demands payment within 15-30 days and serves as a prerequisite for filing a criminal complaint in India.

Is this notice legally valid in India?→

Yes, this notice is drafted in compliance with Indian laws under the Negotiable Instruments Act, 1881, and IPC, making it legally enforceable across India when sent via registered post or speed post.

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

No stamp duty is required for legal notices in India, as they are not instruments under the Indian Stamp Act. However, verify state-specific rules if filing in court.

In what format can I download this notice?→

Download this customizable legal notice in editable Word (.docx) or PDF format for immediate use in India.

Can I edit or customize this notice for my case?→

Yes, this notice is fully customizable. Edit details like parties' names, cheque number, amount, and dates to suit your specific cheque bounce and cheating case in India.

When and who should use this notice under Section 138 NI Act and Section 420 IPC?→

Use this notice if you are the payee whose cheque was dishonoured. Send it within 30 days of bounce intimation to demand payment and initiate legal proceedings in India.

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT AND SECTION 420 OF IPC

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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