Notice Under the Negotiable Instruments Act Regarding a Dishonoured Cheque (India)
This template is a formal legal notice sent by a lawyer on behalf of a client to a person or business whose cheque has been dishonoured due to insufficient funds. It demands payment within 15 days and warns of potential criminal prosecution under Section 138 of the Negotiable Instruments Act in India.
NOTICE UNDER NEGOTIABLE INSTRUMENTS ACT REGARDING DISHONOUR CHEQUE
REGISTERED A.D.
|
|
To,
Mr..............................................……………
RESI....................................……………………
Sub:- Notice under Section 138 of the Negotiable Instruments Act for Cheque Dishonoured due to insufficient funds.
Dear Sir,
Under instructions and authority from our client M/s. ____________________________ having their office at _____________________________, we serve upon you the following notice of demand under Section 138 of the Negotiable Instruments Act.
1. That your business concern M/s ______________________________ had purchased from my client goods (Name and brief description of goods) vide their invoice bearing no. _________ dated __________________ for Rs.__________________
2. On delivery of goods above mentioned, you issued a cheque bearing no. ____ dated _________ for Rs._______drawn on ____ Bank.
3. That when the aforesaid cheque was presented by our client M/s. ______________ to your Bankers i.e. _____________________ the same was returned unpaid by the Bank with the remarks/reasons "Insufficient Funds". This fact was brought to your notice by our client vide letter dated______________________.
4. That in reply to our client’s letter, you sent a letter dated ________________ requesting him to deposit the cheque again with banker and assured him that they will be cleared this time.
5. My client again presented your above mentioned cheque with its bankers, this time again cheque was returned un-paid by the bank due to insufficient funds.
6. That thereafter inspite of many telephonic reminders and personal visits by the representative of our client to your office, you failed to make the payment due to our client.
7. That on account of the above facts, you are liable to be prosecuted under section 138 of the Negotiable Instrument Act, 1881 as amended upto date under which you are liable to be punished with imprisonment which may extend to one year or with fine which may extend to twice the amount of cheque or with both.
8. Under the circumstances, we call upon you to make the payment of Rs.____________ _____ being the principal amount of the aforesaid cheque along with interest @ ____ % per annum till the time of actual payment within a period of 15 (fifteen) days from the date of receipt of this notice, failing which we will be bound to take further necessary action under the provisions of Negotiable Instrument Act, 1881 against you in the competent court of law at your risk and cost.
This is without prejudice to all other legal rights and remedies available to our client for the above-stated purpose.
Kindly take notice.
Date:____________ Yours faithfully,
5.0 out of 5 on Google
Read reviewsAs seen in
Frequently asked questions
A template isn't binding on its own - like any contract, it becomes binding once it's properly completed and signed. Templates in our curated library are professionally drafted for US or UK law; review any template before you sign it.
Yes. Chat with GitLaw to edit any section, or make changes directly in the editor.
Yes, read about team plans here.
Describe what you need in the chat and GitLaw will draft it for you.
Templates in our curated library are professionally drafted for US or UK law. The wider library comes from the GitLaw community and public sources - a solid starting point, but check any template fits your situation before you rely on it.
Mostly US and UK law. Some templates use general commercial terms that work across jurisdictions, and many note which law they're written for.
It depends on the situation. Templates work well for routine business agreements. For anything involving significant money, complex IP, employment, or areas you're unsure about, it's worth getting professional advice before you sign. GitLaw provides templates and tools, not legal advice.
Open any template in GitLaw and describe the change you want in the chat — 'make clause 4 mutual' or 'add a 30-day notice period', for example. GitLaw drafts the revised language and shows it as a suggested edit. You accept, reject, or keep editing from there.
Yes. Upload a Word, PDF, or Markdown file and GitLaw will open it in the editor. You can review, edit, or chat with GitLaw about it the same way you would with any template from the library.
Trusted by thousands of businesses
From template to signed, in one place
Every template opens in an editor with an AI agent alongside it.
Open
Pick a template and open it. Nothing to download, and no credit card to start.
Free to open
Edit with AI
Describe your situation in chat and the agent adapts the wording, clause by clause.
Tracked changes you can review
Send and sign
Share it for negotiation, then collect signatures without leaving GitLaw.
eSign included
Built for your legal work, with practicing lawyers
Trained on 5.5K+ clauses and specialist areas of law. Built with a standards committee of independent lawyers.
As seen in
Start free
No sales calls, no credit card. Just chat with GitLaw.
GitLaw provides templates and tools, not legal advice. Templates are a starting point, not a substitute for advice on your situation - for anything significant, speak to a qualified lawyer.