Cheque Bounce Notice Template (Section 138 NI Act Format)

DEMAND NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
(SENT VIA REGISTERED POST WITH ACKNOWLEDGMENT DUE & SPEED POST)

Date: [DD/MM/YYYY]

To,
1. [Drawer Legal Entity / Individual Name]
2. [Director / Signatory Name, Managing Director]
Address: [Drawer Registered Address]

SUBJECT: STATUTORY NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 FOR DISHONOR OF CHEQUE NO. [Cheque Number] FOR INR [Cheque Amount].

Sir / Madam,

Under instructions from and on behalf of my client, [Your Name / Company Name], having registered office at [Your Address] (hereinafter referred to as "My Client"), I hereby serve upon you this Statutory Legal Notice:

1. That in discharge of your legally enforceable debt and commercial liability towards My Client, you issued Cheque No. [Cheque Number] dated [DD/MM/YYYY] for an amount of INR [Amount in Numbers] (Rupees [Amount in Words] Only) drawn on [Drawer Bank Name, Branch].
2. That My Client presented the said cheque for encashment through their bankers, [Payee Bank Name, Branch].
3. That to the shock of My Client, the said cheque was returned unpaid and dishonored by your bank with the memo stating "[Reason: Funds Insufficient / Exceeds Arrangement / Account Closed]" vide Bank Return Memo dated [Memo Date], which was received by My Client on [Receipt Date].
4. That you issued the said cheque knowing fully well that there were insufficient funds in your account, thereby committing an offense punishable under Section 138 of the Negotiable Instruments Act, 1881.

THEREFORE, I hereby call upon you to make full payment of the cheque amount of INR [Amount] to My Client within FIFTEEN (15) DAYS from the date of receipt of this notice.

PLEASE TAKE NOTE that if you fail to make payment within the stipulated 15 days, My Client shall be constrained to initiate criminal proceedings against you under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 before the competent Judicial Magistrate, wherein you shall be liable to be punished with imprisonment for a term which may extend to TWO YEARS, or with fine which may extend to TWICE THE AMOUNT OF THE CHEQUE, or with both.

Yours faithfully,

[Advocate Name]
Advocate, High Court
Encl: Copy of Cheque, Bank Dishonor Memo