Notice / Reply

Cheque Bounce Notice (Sec 138 NI Act)

A mandatory statutory demand notice under Section 138 of the Negotiable Instruments Act for a dishonoured cheque.

Notice under Section 138, Negotiable Instruments Act, 1881

WITHOUT PREJUDICE

Date: [Date]

To,
[Recipient name],
[Full address]

Subject: Statutory notice for dishonour of cheque No. [Cheque No.] for Rs. [Amount].

Under instructions of my client, [Sender name], I serve upon you the following notice:

1. That in discharge of a legally enforceable liability, you issued cheque No. [Cheque No.] dated [date] for Rs. [Amount] drawn on [Bank & branch] in favour of my client.

2. That on presentation, the said cheque was returned dishonoured vide the bank memo dated [date] with the endorsement "[funds insufficient / payment stopped]".

3. That the dishonour of the said cheque constitutes an offence punishable under Section 138 of the Negotiable Instruments Act, 1881, with imprisonment up to two years and/or fine up to twice the cheque amount.

4. I hereby call upon you to pay my client the said sum of Rs. [Amount] within 15 days of receipt of this notice, failing which my client shall file a criminal complaint under Section 138 read with Section 142 of the said Act at your entire risk as to costs and consequences.

[Advocate name], Advocate
Counsel for [Sender name]
[Enrolment No. / Address]

Before you use it — fill in / check

  • Sender
  • Recipient
  • Amount/subject
  • Date

How to use this template

  1. Read through and replace every [bracketed] or blank placeholder with your actual details.
  2. Delete any clause that doesn't apply and add anything specific to your situation.
  3. Click Print / Save as PDF to download, or Copy text to paste into your letterhead.
  4. Get it signed / stamped / notarised as required, and keep a copy for your records.

This is a general, editable template for convenience only — not legal advice. For anything material, have a professional review it. TaxClue isn't liable for how it's used.