Sample Cheque Bounce Notice Format

To, Date :
Mr. Hemant Ghai
Delhi
Subject: Legal Notice Under Section 138 of the Negotiable Instruments Act, 1881

Sirs,
1. I am writing to you on behalf of Mr. Kunal Sharma, a wholesale trader in woollen
garments, regarding the dishonour of a cheque issued by you to him.
2. As per the details available to us, on 20th April 2021, you received goods from Mr.
Sharma, valued at Rs. 25,00,000/- (Twenty-five lakhs only), in the course of your
business as a retailer in winter wear and other goods. In exchange for these goods, you
issued a cheque dated 1st May 2021, drawn on your account for the aforementioned
amount.
3. Upon depositing the cheque into his bank account, Mr. Sharma was notified by his
banker that the cheque was dishonoured due to insufficient funds in your account.
Subsequently, Mr. Sharma informed you about the dishonour of the cheque, but
regrettably, received no response from you.
4. Despite repeated attempts through phone calls and a personal visit to your residence,
Mr. Sharma has not received any communication or payment from you regarding the
dishonoured cheque.
5. This is to bring to your attention that the dishonour of the cheque issued by you
constitutes an offence under Section 138 of the Negotiable Instruments Act, 1881. As
per the provisions of the Act, you are liable to pay the cheque amount along with
accrued interest and legal expenses within 15 days from the receipt of this notice.
6. Failure to comply with this notice will leave Mr. Sharma with no choice but to initiate
legal proceedings against you, which may include filing a criminal complaint under
Section 138 of the Negotiable Instruments Act, 1881.
7. Therefore, we urge you to settle the outstanding amount of Rs. 25,00,000/- (Twenty-
five lakhs only) immediately to avoid any further legal action.
8. Please treat this matter with the urgency it deserves and make the necessary
arrangements for the payment at the earliest.
9. This notice is issued without prejudice to any of Mr. Sharma's rights and remedies
under law.

Advocate,
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