Complaints and Representations•VERSION 1.0

Legal Notice for Cheque Bounce (Section 138 NI Act)

Jurisdiction:India (General)

Mandatory statutory legal notice issued under Section 138 of the Negotiable Instruments Act 1881 within 30 days of cheque dishonor, giving the drawer 15 days to pay before criminal prosecution.

Legal NoticeGeneral template, legal applicability not verified.

Particulars (13 Fields)

01.Notice Date*

नोटिस अवधि

💡 Prior written notice required before early termination

02.City*

न्यायालय क्षेत्र / शहर

💡 City/District whose courts hold jurisdiction

03.Payee (Holder in Due Course) Name*

विवरण दर्ज करें

💡 e.g. Bhavin Patel

04.Payee Address*

सम्पत्ति / परिसर का पूरा पता

💡 Complete municipal address with PIN code

05.Drawer (Cheque Issuer / Accused) Name*

विवरण दर्ज करें

💡 e.g. Naresh Kumar

06.Drawer Address*

सम्पत्ति / परिसर का पूरा पता

💡 Complete municipal address with PIN code

07.Cheque Number*

विवरण दर्ज करें

💡 e.g. 049281

08.Cheque Date*

विवरण दर्ज करें

💡 Enter accurate cheque date

09.Cheque Amount (INR)*

विवरण दर्ज करें

💡 e.g. 250000

10.Drawee Bank and Branch*

विवरण दर्ज करें

💡 e.g. State Bank of India, Ashram Road Branch

11.Bank Return Memo Date*

विवरण दर्ज करें

💡 Enter accurate bank return memo date

12.Reason for Dishonor (as per memo)*

विवरण दर्ज करें

💡 e.g. Funds Insufficient / Exceeds Arrangement

13.Underlying Legal Debt / Liability Description*

विवरण दर्ज करें

💡 e.g. Repayment of friendly loan / payment against goods supplied vide Invoice No. 402 dated 10-08-2026

Contract Clauses & Optional Terms

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Reorder terms via vertical drag handles or toggle statutory optional covenants. Clauses will automatically re-index sequentially in the agreement sheet.

Tenure & Term of Lease
The term of this lease/tenancy shall be for a fixed duration of {{dura...
Mandatory
Monthly Rent & Due Date
The Second Party covenants to remit a monthly rent of Rs. {{monthly_re...
Mandatory
Refundable Security Deposit
The Second Party has deposited an interest-free refundable security su...
Mandatory
Permitted Use of Premises
The demised premises shall be utilized exclusively for lawful resident...
Mandatory
Statutory Arbitration (Act 1996)
Any dispute arising hereunder shall be referred to a sole arbitrator a...
Delayed Rent Interest (18% p.a.)
Default in monthly rent remittance beyond the grace period shall attra...
Sub-Lease & Assignment Prohibition
The Second Party is strictly prohibited from sub-letting, parting with...
Pet & Society Bylaw Compliance
Domestic pets are permitted subject to strict adherence to resident we...
Force Majeure Calamity Suspension
Neither party shall be held liable for statutory defaults caused by fl...

Party 1 Signature / ExecutionDigital Canvas (HTML5)

Digital Signature Pad

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Paper:

REF: LEGAL-NOTICE-CHEQUE-BOUNCE-138

STATUTORY DEMAND NOTICE (UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881) REGISTERED POST WITH ACKNOWLEDGMENT DUE / SPEED POST Date: [Notice Date] Place: [City] TO: [Drawer (Cheque Issuer / Accused) Name] Address: [Drawer Address] FROM: [Payee (Holder in Due Course) Name] Address: [Payee Address] SUBJECT: LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 FOR DISHONOR OF CHEQUE NO. [Cheque Number] DATED [Cheque Date] FOR INR [Cheque Amount (INR)]/-. Sir / Madam, Under instructions and on my own behalf as the Holder in Due Course, I hereby serve upon you this Statutory Legal Demand Notice: 1. That in discharge of your legally enforceable debt and liability towards me, namely: [Underlying Legal Debt / Liability Description] you had issued and delivered Cheque No. [Cheque Number], dated [Cheque Date], drawn on [Drawee Bank and Branch], for an amount of INR [Cheque Amount (INR)]/- (Rupees in figures). 2. That I presented the aforesaid cheque for collection through my banker. However, the said cheque was returned dishonored and unpaid with the Bank Return Memo dated [Bank Return Memo Date] bearing the remark: "[Reason for Dishonor (as per memo)]". 3. That you have knowingly failed to maintain sufficient funds in your bank account, thereby dishonoring the negotiable instrument issued by you. 4. DEMAND FOR PAYMENT: In accordance with Section 138 Clause (b) of the Negotiable Instruments Act, 1881, I hereby formally call upon you to pay the entire cheque amount of INR [Cheque Amount (INR)]/- to me within FIFTEEN (15) DAYS of the receipt of this Notice. 5. CONSEQUENCES OF NON-PAYMENT: Please take notice that if you fail to remit the aforesaid sum within 15 days from the receipt of this notice: a) A criminal complaint shall be instituted against you under Section 138 of the Negotiable Instruments Act 1881 in the competent court of law; b) Under Section 138, you shall be liable to be punished with imprisonment for a term which may extend to two (2) years, or with fine which may extend to twice the amount of the cheque, or with both; c) Appropriate proceedings for recovery of debt along with interest and costs shall be filed against you at your sole cost and consequence. Copy retained for filing before the competent Magistrate Court. Yours faithfully, ________________________________________ [Payee (Holder in Due Course) Name] Holder in Due Course

SCHEDULE OF TERMS, COVENANTS & CONDITIONS(6 ACTIVE CLAUSES)

1. TENURE & TERM OF LEASE: The term of this lease/tenancy shall be for a fixed duration of {{duration_months}} months commencing on {{commencement_date}} and terminating on {{expiry_date}} unless renewed by mutual consent.

2. MONTHLY RENT & DUE DATE: The Second Party covenants to remit a monthly rent of Rs. {{monthly_rent}} payable in advance on or before the {{rent_due_day}} day of each calendar month.

3. REFUNDABLE SECURITY DEPOSIT: The Second Party has deposited an interest-free refundable security sum of Rs. {{security_deposit}} with the First Party, returnable within 7 banking days of vacant handover.

4. PERMITTED USE OF PREMISES: The demised premises shall be utilized exclusively for lawful residential dwelling purposes and shall not be converted into commercial or industrial use.

5. STATUTORY ARBITRATION (ACT 1996): Any dispute arising hereunder shall be referred to a sole arbitrator appointed mutually under the Arbitration and Conciliation Act, 1996, with seat of arbitration in the execution city.

6. SUB-LEASE & ASSIGNMENT PROHIBITION: The Second Party is strictly prohibited from sub-letting, parting with possession, or assigning any portion of the premises to third parties without prior written consent.

ATTESTATION BY INDEPENDENT WITNESSES (AS PER APPLICABLE LAW)

First Witness

Signature:

Full Name:

Parent / Spouse:

Address:

Govt ID / Aadhaar:

Second Witness

Signature:

Full Name:

Parent / Spouse:

Address:

Govt ID / Aadhaar:

Page 1 of 1 • General Draft Template (A4)Jurisdiction: India (General)

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QUICK LEGAL SUMMARY (STATUTORY OVERVIEW)

What is a Legal Notice for Cheque Bounce (Section 138 NI Act)?

A Section 138 Legal Notice for Cheque Bounce is a compulsory statutory demand served within 30 days of receiving the bank memo for dishonor of a cheque issued in discharge of a debt. It demands payment within 15 days; if unpaid, a criminal complaint punishable with up to 2 years imprisonment can be filed.

LEGAL VALIDITY & GOVERNING ACTS

Enforceability in Indian Courts

Statutory mandate under Section 138(b) of the Negotiable Instruments Act 1881. Without proof of delivery of this notice, no court can take cognizance of a cheque bounce complaint.

Registration Rule:Must be sent via Speed Post or Registered Post (RPAD) with tracking preserved.

STAMP DUTY & NOTARIZATION

Execution on Stamp Paper

Plain paper notice issued directly or through an advocate.

PROCEDURE: Print first page on Non-Judicial Stamp Paper, attach subsequent pages on plain paper, and get notarized where applicable.

REQUIRED DOCUMENTS & VERIFICATION CHECKLIST

Documents Needed to Execute This Legal Notice for Cheque Bounce (Section 138 NI Act)

Keep the following self-attested documents ready before signing and attesting the agreement:

Original Dishonored Cheque

Bank Return Memo stating insufficient funds

Proof of postal dispatch and delivery

CONTRACTUAL TERMS & CLAUSES

Essential Clauses in This Agreement Draft

Every clause is structured according to Indian statutory jurisprudence to safeguard the interests of both executing parties:

01.Statement of Existing Legal Debt

Establishes that the cheque was issued for legally enforceable liability.

02.Mandatory 15-Day Cure Window

Strict statutory period for payment before criminal court filing.

FREQUENTLY ASKED QUESTIONS

Legal FAQs on Legal Notice for Cheque Bounce (Section 138 NI Act)

What is the time limit for sending a cheque bounce notice in India?

The notice must be sent within strictly 30 days from the date of receipt of the bank return memo.

What happens if the drawer does not pay within 15 days?

The payee has 30 days from the end of the 15-day notice period to file a criminal complaint before the Metropolitan Magistrate or Judicial Magistrate.

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General Legal DisclaimerThe draft template provided on this page is for general reference and self-help informational purposes only. Applicable legal provisions, stamp duty rates, and registration procedures vary across Indian states and specific factual situations. This document generator does not create an advocate-client relationship and is not a substitute for formal legal advice from a licensed advocate.