Legal document

Section 138 Notice

Standard format — adapt the highlighted details to your company, and have a professional review it before use.

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This template is a starting point, not legal advice. Adapt it to your situation — and for anything high-stakes, get a professional review before you sign or send it.

Understanding this document

What is section 138 notice?

When a cheque bounces, Section 138 of the Negotiable Instruments Act gives the payee a criminal remedy — but only through a strict sequence. The demand notice is step one: written demand for payment within 30 days of dishonour. Miss the sequence and the complaint fails at the threshold.

When do you need it?

Within 30 days of the bank's return memo. The drawer then gets 15 days to pay. Only after those 15 days expire unpaid can you file the complaint — within one month of that expiry.

Common mistakes to avoid

Sending the demand notice after the 30-day window — the entire case collapses.
Filing the complaint before the 15-day payment period expires.
Notice missing the cheque number, date, amount, and return memo details.
Sending it by ordinary post with no proof — use registered post AD or a provable email.

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