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