Section 138 Cheque Dishonour Notice Template

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Title: NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format

Has your cheque been dishonoured? Get our ready-to-use NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format in PDF or Word format for free download in India.

Facing the frustration of a bounced cheque? A properly drafted NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format is your first crucial step towards recovering your dues under the Negotiable Instruments Act, 1881. This legal notice serves as a prerequisite before filing a criminal complaint in court for cheque dishonour cases, ensuring compliance with statutory requirements.

Why is NOTICE UNDER SECTION 138 of the NI Act Important?

Under Section 138 of the Negotiable Instruments Act, 1881, the dishonour of a cheque due to insufficient funds or other reasons constitutes a punishable offence in India. However, before approaching the court, the payee must issue a formal legal notice to the drawer demanding payment within 15 days. This NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format is essential because:

It triggers the 30-day limitation period for filing a complaint.
Failure to send a valid notice can lead to dismissal of your case.
It provides the drawer one last opportunity to settle the debt amicably.

Using a customizable legal template like ours ensures your notice meets all court requirements, saving you time and legal fees.

Key Elements of the Section 138 Cheque Bounce Notice Format

A professional NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format should include the following essential sections:

Sender's and Recipient's Details: Full name, address, and contact information of the payee (complainant) and drawer.
Cheque Details: Cheque number, date, amount, bank name, and date of presentation.
Reason for Dishonour: Reference to the bank memo indicating 'insufficient funds' or 'account closed'.
Demand for Payment: Clear statement demanding repayment of the cheque amount plus interest/bank charges within 15 days.
Consequences of Non-Payment: Warning of legal action under Section 138 NI Act if payment is not made.
Date and Signature: Properly dated and signed by the payee or authorized representative.

Our ready-to-use template incorporates all these elements, formatted for Indian courts and compliant with legal standards.

Who Should Use This Notice Format?

This NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format is ideal for:

Businesses and Traders: Recovering payments from debtors via bounced cheques.
Individuals: For personal loans or transactions where cheques were issued.
Professionals: Lawyers, CAs, and consultants handling client disputes.
Small Enterprises: In civil and commercial matters across India.

Common use cases include loan repayments, supplier payments, rent, or service fees dishonoured due to cheque bounce.

Download Your Customizable Template Now

Don't delay justice! Download our free NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE Format in editable Word or PDF format today. Customize it with AI assistance or professional legal help for your specific case. Available for instant download across India.

Important Note on Customization and Legal Advice

While this legal template is designed to be ready-to-use and customizable, it is recommended to consult a lawyer for case-specific modifications. Ensure timely dispatch via registered post or speed post. Explore related documents like Affidavit under Section 145 NI Act, Cheque Bounce Complaint Format, or other NI Act templates for comprehensive legal support. Keywords: Section 138 notice sample India, cheque dishonour legal notice PDF, NI Act notice free download, bounce cheque notice Word format.

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE

NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOUR OF CHEQUE

Registered A. D.

Dated..........................

M/s...........................

...........................

Dear Sirs,

Under instructions and on behalf of my client........................... I serve you this notice as in the succeeding paragraphs: ?

1. That Shri.......................... of the Company had approached my Client
M/s........................... for supply of its product for sale in the State of..........................

2. That since Shri.......................... was also a Director of........................... the authorised dealers of my client?s products in the State of.......................... my client had agreed to supply its product to your company.

3. That my clients at the request of Shri.......................... the Director of your Company, supplied its various products worth Rs........................... against invoice No........................... dated..........................

4. That the company had given a cheque No........................... dated .......................... for Rs........................... drawn on the.......................... to my client in payment of the supplies made by my client vide invoice No........................... dated .......................... to you.

5. That my client presented the said cheque to the Banker of the company, .......................... for payment. However, the Banker of the company has returned the said cheque to my client on.......................... with the remarks "Refer to drawer".

6. That my client on receipt of the cheque as unpaid from the Bankers of the company sent a notice of dishonour No........................... dated.......................... intimating therein about the dishonour of the cheque No........................... dated .......................... for Rs........................... given to my client in payment of materials despatched by my client to you. In the said notice of dishonour my client had intimated that in case payment of dishonoured cheque is not received within seven days of the receipt of the letter my client shall proceed to recover the amount of the cheque by taking recourse to legal proceedings.

7. That despite the said notice of dishonour, you have failed to make payment of the dishonoured cheque to my client within the stipulated period of seven days.

8. That you are liable to pay to my client the sum of Rs........................... with interest @.......................... per cent per annum till date of payment which you have failed and neglected to pay to my client despite notice of dishonour served on you.

I now call upon you through the medium of this notice to pay to my client the sum of Rs........................... with interest @.......................... % per annum till payment is made to our client and in case payment is not made to my client within fifteen days from the date of receipt of this notice, I have instructions from my clients to institute appropriate legal proceedings against your company and its directors for the recovery of the said amount in the court of law having jurisdiction over the matter and in such an event your company shall be liable for all costs and expenses. The cost of this notice is Rs........................... which you are also liable to pay.

I have kept a copy of this notice in my office record for future reference.

...........................Advocate

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Important Guidelines

A "Notice under Section 138 of the Negotiable Instruments Act for Dishonour of Cheque" is a legal notice issued in India when a person or entity intends to take legal action against another party for dishonoring a cheque due to insufficient funds or other reasons. It is a crucial step in initiating a criminal case for cheque bounce. Here's a brief guideline on its use and

Common Mistakes to Avoid:

Usage:

Identify the Default: Confirm that the cheque in question has been dishonored due to insufficient funds or another reason that falls under Section 138 of the Negotiable Instruments Act.

Draft a Formal Notice: Prepare a clear and concise legal notice addressed to the drawer of the bounced cheque, stating the facts, cheque details, and demand for payment within 15 days.

Provide Legal Grounds: Clearly mention the legal provisions, i.e., Section 138 of the Act, under which the notice is issued.

Request Compensation: Specify the amount you are seeking as compensation for the dishonored cheque and any additional damages incurred.

Common Mistakes to Avoid:

Incomplete or Inaccurate Notice: Ensure that all details, such as cheque particulars and legal provisions, are accurate.

Missed Deadline: Serve the notice within the statutory timeframe, usually 30 days from the date of dishonor, to maintain legal validity.

Lack of Supporting Documents: Attach copies of the bounced cheque, notice of dishonor from the bank, and any other relevant documents to substantiate your claim.

Unreasonable Demands: Request a reasonable amount of compensation aligned with the actual damages suffered.

Threatening Language: 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.

A well-drafted Section 138 notice is essential in initiating legal proceedings for cheque bounce. Seek legal advice and follow these guidelines meticulously to strengthen your case and protect your rights as a payee.

Frequently asked questions

What is a Notice under Section 138 of the Negotiable Instruments Act for dishonour of cheque?→

This is a legal notice sent by the payee to the drawer when a cheque is dishonoured due to insufficient funds or other reasons, as mandated under Section 138 of the NI Act in India. It is a prerequisite before filing a criminal complaint in court.

Is this notice legally valid across India?→

Yes, this notice template is compliant with Section 138 of the Negotiable Instruments Act, 1881, and is legally valid for use in all states and union territories of India.

Do I need to pay stamp duty on this Section 138 notice?→

No, legal notices under Section 138 of the NI Act in India do not require stamp duty. However, it must be sent via registered post or speed post for proof of delivery.

In what format can I download this notice?→

You can download this notice in editable Word (.docx) and non-editable PDF formats, suitable for immediate use or customization.

Can I edit or customize this notice template?→

Yes, the template is fully customizable. Edit details like drawer/payee names, cheque details, amount, date of dishonour, and bank information before sending.

When and who should use this notice for cheque bounce?→

The payee (recipient of the cheque) should issue this notice within 30 days of receiving the bank's dishonour memo. It gives the drawer 15 days to repay before legal action.