Section 138 Notice Format Guide | Legal Notice for Cheque Bounce
A legal notice under Section 138 of the Negotiable Instruments Act is the first and most crucial step in filing a cheque bounce case. If the notice is not drafted or served correctly, the entire prosecution may fail.
When a cheque issued for repayment of a legally enforceable debt is dishonoured by the bank, the payee must send a statutory demand notice to the drawer within the time limit prescribed under the NI Act.
This guide explains the complete process of issuing a Section 138 notice, including the legal notice format, mandatory elements, statutory timelines and common mistakes.
Table of Contents
What is a Section 138 Legal Notice?
A Section 138 legal notice is a statutory demand notice issued by the payee to the drawer of a dishonoured cheque demanding payment of the cheque amount within 15 days.
Issuing this notice is a mandatory requirement before filing a criminal complaint for cheque bounce. If you are dealing with a cheque bounce dispute and need legal guidance, consult an expert cheque bounce lawyer to understand the appropriate legal strategy.
Statutory Timeline for Cheque Bounce Notice
| Stage | Time Limit |
|---|---|
| Cheque dishonour | Bank issues return memo |
| Legal notice | Within 30 days of dishonour |
| Payment period | 15 days from notice receipt |
| Complaint filing | Within 1 month after cause of action |
Essential Elements of Section 138 Notice
| Element | Description |
|---|---|
| Cheque details | Cheque number, date and amount |
| Bank dishonour memo | Reason for dishonour |
| Debt or liability | Details of underlying transaction |
| Demand for payment | Clear demand for cheque amount |
| 15 day payment period | Time given to drawer to pay |
Section 138 Legal Notice Format
Date: _______
To [Name of Drawer] [Address]
Subject: Legal Notice under Section 138 of the Negotiable Instruments Act
Sir/Madam,
You issued cheque bearing number ______ dated ______ drawn on ______ bank for an amount of ₹____ in discharge of your legally enforceable debt.
The said cheque was presented for encashment but was returned unpaid by the bank with the remark ______.
You are hereby called upon to make payment of ₹_____ within 15 days from the receipt of this notice.
Failing which, my client will initiate criminal proceedings under Section 138 of the Negotiable Instruments Act.
Advocate [Name]
Service of Legal Notice
The notice must be sent to the correct address of the drawer through reliable means.
| Mode of Service | Evidence |
|---|---|
| Registered post | Postal receipt and tracking report |
| Speed post | Delivery confirmation |
| Courier | Courier receipt |
| Email (in some cases) | Email delivery records |
Common Mistakes in Section 138 Legal Notice
| Mistake | Impact |
|---|---|
| Notice sent after 30 days | Complaint becomes invalid |
| No clear demand | Notice defective |
| Incorrect cheque details | Weakens prosecution |
| Notice sent to wrong address | Service may fail |
Important Supreme Court Judgments
C.C. Alavi Haji v. Palapetty Muhammed
The Supreme Court held that even if the notice is not actually received, service may be presumed if the notice was properly addressed and sent.
Dashrath Rupsingh Rathod v. State of Maharashtra
The Court clarified jurisdiction rules for cheque bounce cases.
Practical Steps for Drafting a Cheque Bounce Notice
Verify cheque details
Confirm cheque number, date and bank details before drafting notice.
Check statutory timeline
Ensure the notice is sent within 30 days of dishonour.
Include clear demand
The notice must clearly demand payment of the cheque amount.
Preserve proof of service
Maintain postal receipts and tracking records.
For professional assistance in drafting and serving legal notices, consider consulting a section 138 lawyer who can ensure compliance with all statutory requirements.
Conclusion
Issuing a proper legal notice is a mandatory step in cheque bounce litigation. Errors in notice drafting can lead to dismissal of the complaint.
For professional assistance in cheque bounce cases,contact us.
You may also read our guides on Cheque Bounce Case Procedure and Cheque Bounce Defence Strategies.