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Cheque Bounce Legal Notice (Section 138, Negotiable Instruments Act)

Demand notice to the drawer of a dishonoured cheque under Section 138 of the NI Act - to be sent within 30 days of the bank's return memo.

🇮🇳 India

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Cheque Bounce Legal Notice (Section 138, Negotiable Instruments Act) - sample

LEGAL NOTICE under Section 138 of the Negotiable Instruments Act, 1881

Ref.: REF-2026-014
Date: 06/10/2026

To
M/s Shree Traders, 14 Market Road, Indore

Under instructions from, and on behalf of, Rahul Mehta, resident of ____________, I hereby serve you with the following notice:

1. You issued to me cheque no. 004512 dated 06/10/2026 for Rs. 250,000, drawn on State Bank of India, Vijay Nagar Branch, Indore, towards the discharge of a legally enforceable debt, being Payment of invoice no. 118 dated 02/03/2026.

2. When I presented the cheque for payment within its validity, it was returned unpaid by my bank with the memo dated 06/10/2026, for the reason: Funds insufficient.

3. By this notice I call upon you to pay me the sum of Rs. 250,000 within FIFTEEN (15) DAYS of receipt of this notice.

4. If you fail to make the payment within that period, I shall be constrained to initiate criminal proceedings against you under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 and to recover the amount with interest, costs and compensation, entirely at your risk as to costs and consequences.

5. A copy of the cheque, the bank's return memo and the proof of dispatch are retained for production before the court.

This notice is issued without prejudice to my other rights and remedies in law.



Rahul Mehta
+91 98765 43210

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Cheque Bounce Legal Notice (Section 138, Negotiable Instruments Act)

Section 138 of the Negotiable Instruments Act makes the dishonour of a cheque for insufficient funds a criminal offence, but only if a written demand is sent within 30 days of the return memo and the drawer then fails to pay within 15 days. This notice follows that sequence.

When to use it

  • Demanding payment before a claim
  • Ending a tenancy or a contract
  • Formal requests to authorities and companies

How to write Cheque Bounce Legal Notice (Section 138, Negotiable Instruments Act)

  1. Write the full names and addresses of both sides and the dates and amounts exactly as they appear in your papers.
  2. State the demand in one clear sentence and give a reasonable deadline.
  3. Send it by a method that gives proof (registered post, speed post, courier with receipt or a tracked e-mail) and keep the receipt.
  4. For a high-value or contested matter, have a lawyer check the notice before you send it.

Tips

  • Send it by registered post with acknowledgement due and keep the postal receipt and tracking printout.
  • Do not present the same cheque again after 3 months from its date - the validity runs from the date written on it.

Attach with it

  • Copies of contracts, invoices and messages
  • Proof of identity where the receiver asks

Common mistakes

  • Missing deadline in the notice
  • Sending without proof of delivery

Options you can choose

Tone and salutation, validity statement, ID-copies note, witness boxes, execution note (notary / stamp paper / oath), QR or reference box, four layouts and - in any language except English - a side-by-side English copy.

How to write a Cheque Bounce Legal Notice (Section 138, Negotiable Instruments Act)

  1. Fill in the form: Your name (payee), Your address, Phone, Drawer of the cheque (name and address), Cheque no., Cheque date.
  2. Add your letterhead, logo, footer or watermark if you like.
  3. Download a print-ready PDF - or send it for e-signature.

Legal notices & forms →

FAQ

Within what time must the notice be sent?

Within 30 days of the date you receive the bank's cheque return memo. A notice sent later does not support a complaint under Section 138.

Do I need a lawyer to send it?

No, the payee may send it personally, but notices are normally sent by an advocate by registered post AD and e-mail. Have a lawyer check it before sending if the amount is large.

Is a legal notice sent by me valid, or must a lawyer send it?

In most places a notice sent by you is valid, but a notice from a lawyer carries more weight. For high-value or contested matters, have a lawyer check it first.

How should I deliver a legal notice?

By registered post with acknowledgement, courier with proof of delivery, or a tracked e-mail where the other side's address is known. Keep every receipt.

Are these templates legal advice?

No. They are drafting aids. Rules differ by country and state, so check the formalities (stamp duty, notary, deadlines) that apply to you.

Is this Cheque Bounce Legal Notice (Section 138, Negotiable Instruments Act) template free?

Yes. You can fill it in online and download it as a PDF for free, without installing anything.

Can I change the wording?

Yes. Every sentence of the document can be edited on the page before you download it.

This is a general template, not legal advice. Check any requirements that apply in your country or organisation.

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