Section 138, Negotiable Instruments Act, 1881. Fill in all details carefully — missing any deadline can invalidate your case.
Under instructions and on behalf of my client, (Your Name), residing at (Your Address), contactable at (Contact), I hereby issue this Legal Notice to you under Section 138 of the Negotiable Instruments Act, 1881, as under:
1. That my client is entitled to receive from you a sum of Rs.(Amount) on account of (nature of transaction) . The said amount constitutes a legally enforceable debt and liability owed by you to my client within the meaning of Section 138 of the Negotiable Instruments Act, 1881.
2. That in discharge of the aforesaid legally enforceable debt and liability, you issued and delivered to my client a cheque bearing No. (Cheque No.) dated (Cheque Date), drawn on (Bank Name), , for a sum of Rs.(Amount), account number .
3. That my client presented the aforesaid cheque for encashment at (Your Bank) on (Presentation Date), which was well within the validity period of three months from the date of the cheque. The said cheque was, however, returned unpaid by the drawee bank on (Return Date) with the bank's return memo citing the reason: "(Reason for Dishonour)".
4. That my client received the bank's return memo and information of dishonour on (Memo Receipt Date). This legal notice is being issued within the prescribed period of 30 (thirty) days from the said date, in strict compliance with the proviso to Section 138 of the Negotiable Instruments Act, 1881.
5. That the dishonour of the aforesaid cheque issued by you in discharge of a legally enforceable debt constitutes an offence under Section 138 of the Negotiable Instruments Act, 1881. By virtue of Section 139 of the Act, it shall be presumed that the said cheque was issued by you in discharge of a legally enforceable debt or liability. You are accordingly liable to be prosecuted and punished with imprisonment for a term which may extend to two years, or with a fine which may extend to twice the amount of the cheque, i.e., Rs.(2× Amount), or with both.
DEMAND UNDER SECTION 138(b): I, on behalf of my client, hereby call upon you to pay the sum of Rs.(Amount) (Rupees (Amount in words) only) to my client within 15 (fifteen) days of receipt of this notice, by way of bank transfer / NEFT / RTGS.
This demand is in strict compliance with the mandatory 15-day payment window prescribed under Section 138(c) of the Negotiable Instruments Act, 1881.
6. That if you fail to make the aforesaid payment within the stipulated period of 15 days from the receipt of this notice, my client shall be constrained — without any further notice — to initiate the following legal proceedings against you:
a) A criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 before the competent Magistrate Court at (Jurisdiction), which shall be prosecuted until its logical conclusion;
b) A civil recovery suit for the principal amount along with interest and costs;
c) Proceedings under Section 143A of the NI Act, seeking interim compensation of up to 20% of the cheque amount during the pendency of the criminal trial;
d) Any other legal remedy available under law.
This notice is being served upon you by Registered Post Acknowledgement Due (RPAD). A copy is retained in the office of the undersigned advocate for record and further action.
This is your last and final opportunity to make payment and avoid criminal prosecution. Time is of the essence. Please govern yourself accordingly.