Demand Notice Format Under Section 138 NI Act — Free Template
Sending the right demand notice is the most critical step in a cheque bounce case. Get it wrong and your case may be dismissed even before it reaches court. This guide gives you a free, court-ready template and explains every element.
For the full guide on Section 138 NI Act — process, timeline, and filing a complaint — read our Complete Section 138 Guide.
Why the Demand Notice is So Critical
The demand notice under Section 138 serves two purposes:
- Legal requirement: Without a valid notice, the offence under Section 138 does not even arise
- Opportunity to pay: The law gives the drawer a final chance to pay before criminal prosecution begins
If the notice is defective — wrong address, missing information, or sent too late — courts can dismiss the complaint at the threshold.
What Must the Notice Contain
The Supreme Court has held that while there is no prescribed format, the notice must clearly communicate:
- That the cheque was presented and dishonoured
- The specific reason for dishonour
- The amount demanded
- A clear demand for payment within 15 days
- A warning that failure to pay will result in legal action under Section 138 NI Act
Free Demand Notice Template — Section 138 NI Act
[YOUR NAME / COMPANY NAME] [Your Complete Address] [City, State, PIN Code] [Phone Number] [Email Address]
Date: [DD/MM/YYYY]
By Registered Post with Acknowledgement Due (RPAD)
To, [Name of Cheque Drawer / Accused] [Complete Address as Known] [City, State, PIN Code]
Subject: Legal Demand Notice under Section 138 of the Negotiable Instruments Act, 1881
Dear [Mr./Ms./M/s. Name],
1. Background of Transaction
I/We write to bring to your notice the following facts and to demand payment of the amount specified below.
You had issued a cheque bearing Cheque No. [CHEQUE NUMBER], dated [DATE ON CHEQUE], drawn on [BANK NAME], Branch: [BRANCH NAME], Account No.: [ACCOUNT NUMBER], for a sum of ₹[AMOUNT IN FIGURES] (Rupees [AMOUNT IN WORDS] only), in favour of [Payee Name — your name or company name], towards [briefly describe the underlying transaction — e.g., "repayment of loan advanced on [date]" / "payment for goods supplied vide Invoice No. [X]" / "security for [purpose]"].
2. Dishonour of Cheque
The above cheque was presented to [YOUR BANK NAME], [BRANCH], for encashment/clearing on [DATE OF PRESENTATION], and was returned unpaid by the bank vide its Memo/Return Memo dated [DATE OF BANK MEMO], with the remark: "[EXACT REASON STATED BY BANK — e.g., 'Insufficient Funds' / 'Account Closed' / 'Funds Insufficient']"
3. Legal Demand
In view of the above, you are hereby called upon and required to pay the said amount of ₹[AMOUNT] (Rupees [Amount in Words] only) within 15 (FIFTEEN) days from the date of receipt of this notice.
4. Consequences of Non-Payment
Please take notice that if you fail to make the payment of the said amount within 15 days of receipt of this notice, we will be constrained to initiate criminal proceedings against you under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881, without any further notice to you. You will also be liable for the legal costs and expenses incurred by us in this regard.
This notice is without prejudice to any other civil remedies available to us under law.
Please treat this as a legal notice.
Yours faithfully,
[YOUR SIGNATURE]
[Your Name] [Your Designation, if applicable] [Date]
Enclosures:
- Copy of dishonoured cheque
- Bank return memo dated [DATE]
How to Send the Notice
Always send by at least two modes:
Mode 1 — Registered Post with Acknowledgement Due (RPAD)
- Go to your nearest post office
- Fill out a "Book Packet" or "Registered Letter" form
- Request "Acknowledgement Due" (AD)
- Keep the postal receipt — it is proof of posting
- The returned AD card (signed by the addressee) is proof of delivery
- If the addressee refuses to accept: the pink/yellow slip returned by the post office with "Refused" endorsement is sufficient — deemed served
Mode 2 — Speed Post
- India Post Speed Post with tracking
- Keep the receipt and track online
- Screenshot the delivery confirmation
Mode 3 — Email (additional, not substitute)
- Email a PDF copy to the drawer's last known email
- Request read receipt
- Keep a screenshot of the sent email and any read confirmation
Do NOT rely on: WhatsApp messages, SMS, or hand delivery without written acknowledgement.
Calculating the 30-Day Deadline
| Event | Date |
|---|---|
| Bank dishonour memo | Day 0 |
| **Deadline to send notice** | **Day 30 (strictly)** |
Count carefully. Do not rely on approximate counting. If Day 30 falls on a Sunday or public holiday, send the notice the previous working day.
After Sending — What to Do
- Keep all records safe: Postal receipt, tracking details, AD card, copy of notice
- Wait 15 days from the date of service (or deemed service)
- If no payment: File the criminal complaint within 30 days of expiry of the 15-day period
- The complaint must be filed in the court with jurisdiction (usually where your bank branch is located)
Common Errors That Invalidate the Notice
- Sent after 30 days of receiving the dishonour memo — fatal error
- No explicit demand for payment within 15 days — the notice must demand, not merely inform
- Wrong address — send to the drawer's last known address; if you know a newer address, send to both
- Not mentioning the cheque details (number, date, amount, bank) — creates ambiguity
- Not mentioning the bank return memo date — creates questions about the starting point of the limitation period
- Not keeping proof of sending — you will need to prove service in court
Frequently Asked Questions
Can I send the notice myself or do I need a lawyer? You can send it yourself — there is no legal requirement that it be sent by a lawyer. However, a lawyer-drafted notice often carries more persuasive weight and is less likely to have technical defects.
What if the drawer has changed address and I do not have the new address? Send to the last known address. If the postal department returns it undelivered, make a note of the reason. If the drawer is evading service, this becomes a defence available to you in court.
Does sending notice by email alone satisfy the requirement? Courts are inconsistent on this. The safest approach is always RPAD. Use email as an additional mode, not the only mode.
What if I realise I made a mistake in the notice after sending it? If the mistake is minor (typographical, does not affect the core demand), it may not be fatal. If the mistake is substantial (wrong cheque number, wrong amount), consult a lawyer immediately about whether a fresh notice can be sent within the 30-day period.