To be issued on the letterhead of the advocate or of the payee. If issued by an advocate, the advocate must hold written authority from the payee. Send by registered post with acknowledgement due and by email, and retain the postal receipt and tracking record — proof of despatch to the correct address is what the court will look for.
To be issued on the letterhead of the advocate or of the payee. If issued by an advocate, the advocate must hold written authority from the payee. Send by registered post with acknowledgement due and by email, and retain the postal receipt and tracking record — proof of despatch to the correct address is what the court will look for.
BY REGISTERED POST WITH ACKNOWLEDGEMENT DUE, SPEED POST AND EMAIL
Ref. No.: [REFERENCE NUMBER] Date: [DATE]
To,
[NAME OF DRAWER]
[DESIGNATION, IF A COMPANY OR FIRM — e.g. Director]
[FULL ADDRESS AS PER THE CHEQUE AND AS PER RECORDS]
Email: [EMAIL]
Where the drawer is a company or a limited liability partnership, address the notice to the entity and, separately, to each director or designated partner who was in charge of and responsible for the conduct of its business at the relevant time. Section 141 of the Negotiable Instruments Act, 1881 makes such persons liable, but only if they are put on notice.
SUBJECT: STATUTORY NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 IN RESPECT OF DISHONOUR OF CHEQUE(S) BEARING NUMBER(S) [CHEQUE NUMBER(S)] FOR ₹ [TOTAL AMOUNT]
Sir / Madam,
Under instructions from and on behalf of my client, [NAME OF PAYEE], [constitution and address of the payee] (hereinafter referred to as "my client"), I hereby serve upon you the following notice:
1.That my client carries on the business of [DESCRIBE BUSINESS] at [ADDRESS].
2.That you approached my client and, pursuant to the transactions between the parties, a sum of ₹ [AMOUNT] (Rupees [AMOUNT IN WORDS] only) became legally due and payable by you to my client on account of [DESCRIBE THE UNDERLYING LIABILITY — e.g. goods supplied under invoice nos. ______ dated ______ / services rendered under agreement dated ______ / repayment of the loan advanced on ______].
3.That in discharge of the said legally enforceable debt and liability, you issued to my client the following cheque(s), drawn on your account with the bank stated below:
| # | Cheque no. | Cheque date | Amount (₹) | Drawn on (bank and branch) | Account name |
|---|---|---|---|---|---|
| 1 | [NUMBER] | [DATE] | [AMOUNT] | [BANK, BRANCH] | [ACCOUNT HOLDER] |
| 2 | [NUMBER] | [DATE] | [AMOUNT] | [BANK, BRANCH] | [ACCOUNT HOLDER] |
| Total | [TOTAL] |
4.That you represented to my client at the time of issuing the said cheque(s) that the same would be duly honoured on presentation, and my client accepted the cheque(s) in good faith and on the basis of that representation.
5.That my client presented the said cheque(s) for encashment through its bankers, [PAYEE’S BANK AND BRANCH], on [DATE OF PRESENTATION], within the period of validity of the instrument(s).
6.That the said cheque(s) were returned unpaid by the drawee bank with the endorsement "[REASON FOR RETURN — e.g. funds insufficient / account closed / payment stopped by drawer / exceeds arrangement]", vide return memo dated [DATE OF RETURN MEMO], which was received by my client on [DATE OF RECEIPT OF INTIMATION]. A copy of the return memo is enclosed.
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Preview of the first page. Highlighted fields are the ones you fill in — they appear the same way in Word. Scroll the preview to read on; the full document runs to 4 pages.
These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
Nearly every Section 138 complaint that fails does so on timing. Record and preserve: the date on the return memo, the date your client actually received intimation of dishonour, and the date the notice was delivered. The 30-day notice period runs from receipt of information about the dishonour, not from the date of the memo, and the 15-day period runs from receipt of the notice by the drawer.
A drawer who avoids the postman does not defeat the notice. Where the notice is sent by registered post to the correct address and returned unserved or refused, service is generally presumed. Send to every address you have — the address on the cheque, the registered office as per the Registrar of Companies records, and the last known business address — and send by email in addition. Retain the tracking printout.
Section 141 makes a director, partner or officer liable only if that person was in charge of and responsible for the conduct of the business at the relevant time. Name them individually in the notice with that averment, and repeat it in the complaint. A complaint that names only the company, or that names directors without the specific averment, is vulnerable at the threshold.
The cheque must have been issued for a debt or liability that was legally enforceable on the date of the cheque. Paragraph 2 should identify the underlying transaction precisely, with invoice or agreement references. A cheque issued as a security or advance, or in respect of a time-barred debt, invites a defence — take advice before issuing the notice in those cases.
The statutory demand must be for the amount of the cheque. Demanding the cheque amount plus interest, notice charges or damages in the operative demand has been held in several cases to vitiate the notice. Reserve those claims separately, as this template does, rather than folding them into the demand.
A single notice may cover several dishonoured cheques, but each must be within its own 30-day window measured from its own dishonour. If one cheque falls outside the window, exclude it from the demand and pursue it civilly, rather than risking the whole notice.
A cheque may lawfully be presented again within its validity, and a fresh dishonour gives a fresh cause of action. But once a statutory notice has been issued on a dishonour and the 15 days have expired, the cause of action crystallises — do not issue a second notice on a second dishonour of the same cheque hoping to reset the clock.
Section 143A permits the trial court to direct the drawer to pay interim compensation of up to twenty per cent of the cheque amount, and Section 148 permits the appellate court to direct a deposit of not less than twenty per cent where a convicted drawer appeals. Flagging both in the notice, as this template does, is often the fastest route to settlement.
Section 138 offences are compoundable. Most matters settle. Keep a record of every payment received after the notice, and record the terms of any settlement in writing before withdrawing the complaint.
If issued by an advocate, hold written instructions from the payee on file. The notice itself does not require stamping. A vakalatnama will be required at the complaint stage.
Reflects the Negotiable Instruments Act, 1881 as in force on {{DATE OF USE}}. Verify the current position before issuing, and have the notice settled by an advocate — the consequences of a defective notice are not curable.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, company secretary, or chartered accountant as relevant) before you rely on it.