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Format Notice of Cheque Dishonour

Often we receive payment by cheque, unfortunately sometimes it gets dishonoured by the banker for insufficiency of funds in the drawer's account or for some other reasons. As a result we become bound to send legal notice to the drawer of the cheque.

Here is a format of such legal notice below, the format can be also downloaded in  free .pdf version from here.



Ref. No. __________                            Date: ________ 

Mr. _____________

Re:    Notice U/S. 138 (b) of the Negotiable Instruments
        Act, 1881 as amended up-to-date.

    Please take notice that in discharge of your existing legal liability and/or debts, you issued one A/c. payee cheque under your signature in my favour.

   Details of the said cheque are as follows: -

Cheque No. Cheque Date        Drawn on          Amount  
...............      .............           ________ Bank     ...........
                                             _______ Branch

    The abovementioned cheque on due presentation through my banker for encashment within its validity period, was returned unpaid vide cheque return memo dated ____________ with the endorsement “_________”.

It may further be mentioned that under Section 139 of the said Act, there is a presumption that the cheque above mentioned had been issued in discharge of a legally enforceable debt/liability owed by you.

In view of the aforesaid,  I do hereby call upon you and demand you to pay me the aforementioned amount of Rs. ________/- (Rupees ________________________) only, the amount of the said dishonoured cheque by pay order or bank draft or in cash within 15 days from the date of receipt of this notice, failing which, I will be constrained to institute legal proceedings against you under the provisions of Negotiable Instruments Act, 1881 as amended up-to-date, which will render you liable to be punished with imprisonment which may extend to two year or with fine which may extend to twice the amount of the cheque or with both.

    Please treat this letter as a notice u/s. 138 (b) of the Negotiable Instruments Act, 1881 as amended up-to-date and your failure to comply with the aforesaid the abovementioned proceed¬ings under the provisions of the N.I. Act shall be initiated against you without any further reference to you.
                                                                         Yours faithfully,
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