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Section 138 [Cheque Dishonour Notice]
Section 138 Notice can be used when a cheque has bounced or payment wasn’t received. Cheque bounce or cheque non-payment is a serious offence in India punishable with imprisonment or fine under Section 138 of the Negotiable Instruments Act.
In case of cheque return/ non-payment or bounce, it enables the cheque beneficiary to send notice to the cheque issuer under section 138 of the Negotiable Instruments Act within 30 days of return of the cheque to protect his/her rights. Cheque Dishonour notice is a firm and serious intimation to the cheque issuer that if the payment isn’t proceeded, the cheque beneficiary will proceed with legal action.
Section 138 Notice must be presented to the cheque issuer within 30 days of return of cheque due to non-payment to be valid. It is also important to send the Cheque Dishonour Notice through registered post, so that the date of issuing notice can be recorded formally.
ComplianceIndia can help you obtain your draft format of Section 138 [Cheque Dishonour Notice] quickly and hassle-free.
How to proceed?
We will provide the draft format on request which can be used by the cheque beneficiary to prepare and finalise Cheque Dishonour Notice under Section 138 of the Negotiable Instruments Act. Such Notice must contain the name of the cheque beneficiary, check issuer name and address, date of return of cheque, reason for return of cheque, request to the cheque issuer to make arrangement for payment through alternate means immediately and the words that the notice is issued under Section 138 of the Negotiable Instrument Act.
Let us provide a draft personalized and customized copy of Cheque Dishonour Notice under Section 138 to you based on your needs.
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