Legal Notice Under Section 138 of the Negotiable Instruments Act, 1881 for Cheque Dishonour

REGD. A/D / U.P.C.
Dated: [Insert Date]

To,
Sh. [Name of Addressee]
[Address Line 1]
[Address Line 2]
[City, State, PIN Code]

And also at:
[Alternate Address Line 1]
[Alternate Address Line 2]
[City, State, PIN Code]

SUBJECT: LEGAL NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881

Dear Sir/Madam,

Under the instructions and authority granted by my client, Sh. [Client’s Full Name], residing at [Client’s Address], (hereinafter referred to as “my client”), I hereby serve upon you this legal notice as follows:

1. Transaction Details:
   That my client is engaged in the business of [specific business, e.g., trading sewing machines]. During the course of business, you, the addressee, purchased goods/services from my client, including [specific items/services, e.g., sewing machines], for a total value agreed between both parties.

2. Issuance of Cheque for Payment:
   Towards partial/full discharge of your outstanding liability, you issued a cheque bearing no. [Cheque Number] dated [Date of Cheque], drawn on [Name and Branch of Bank], for a sum of Rs. [Amount in Figures] (Rupees [Amount in Words]).

3. Deposit of Cheque for Encashment:
   That the said cheque was duly presented for encashment by my client through his banker, [Name of Client’s Bank and Branch], on [Date of Deposit].

4. Dishonour of Cheque:
   That the cheque was dishonoured and returned unpaid by your bank with the remark/reason “[Reason for Dishonour, e.g., Insufficient Funds/Account Closed]” as indicated in the cheque return memo dated [Date of Memo].

5. Notice of Dishonour:
   My client was informed of the dishonour on [Date], and the original dishonoured cheque along with the return memo was handed back to him by his bank.

6. Offence Under Section 138 of the Negotiable Instruments Act, 1881:
   That by issuing a cheque that was dishonoured upon presentation, you have committed an offence under Section 138 of the Negotiable Instruments Act, 1881, which is punishable under the provisions of the said Act.

DEMAND FOR PAYMENT:

Through this notice, you are hereby called upon to pay a sum of Rs. [Amount in Figures] (Rupees [Amount in Words]), being the value of the dishonoured cheque, within fifteen (15) days of receipt of this notice.

In the event of your failure to make the said payment within the stipulated period, my client shall be constrained to initiate appropriate legal proceedings against you under the provisions of Section 138 of the Negotiable Instruments Act, 1881, and other applicable laws. This will include both criminal complaints and, if necessary, civil suits for recovery of the cheque amount, along with interest, costs, and other consequential damages, at your sole risk, liability, and expense.

TAKE NOTICE:

This is the final opportunity to amicably settle the matter by remitting the outstanding payment to my client within the statutory period. Kindly consider this notice as mandatory compliance under the provisions of Section 138 of the Negotiable Instruments Act, 1881.

Yours sincerely,
[Advocate’s Name]
[Advocate’s Address]
[Contact Number]
[Email Address]

Enclosures:

1. Photocopy of Dishonoured Cheque
2. Copy of Cheque Return Memo