Notice Under the Negotiable Instruments Act Regarding a Dishonoured Cheque (India)
Updated 7 July 2026
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.
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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,
About this template
What is this template?
Notice Under the Negotiable Instruments Act Regarding a Dishonoured Cheque (India) is a free, ready-to-use Banking and finance template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.
When should you use it?
Reach for this Banking and finance template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. This version is drafted with India in mind, though you should always review the final wording against the laws that apply to you.
What's typically included?
A well-drafted Banking and finance usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.