Notice

Under section 138 of Negotiable Instruments Act

Date:
From,
The name & address of the person giving the Notice
(Notice must be given by a person who is authorized to give Notice)
To,
The name & address of the Recipient of the notice
(Notice must be given to a person who is authorized to receive Notice)
(Notice must be sent at address if prescribed under any law)

Subject of the Notice

Make payment in lieu of your dishonoured cheque
Dear Sir / Madam,
1. By this demand notice, I invite your attention that you have issued a cheque for
Rs.AAAAAA dated BBBBBB darwn on CCCCCC Bank. The said cheque was
given in discharge of a liability. (give briefly details of liability for which
cheque was issued)
2. The said cheque was deposited with my bank. However, my bank has vide its
intimation memo dated XXXXXX has informed me that the said cheque is
dishonoured for reason of insufficient funds.
3. In the circumstances, I hereby call upon you to make immediate payment of
amount stated in the dishonoured cheque.
4. Legal Expectation: Take notice that if you do not make payment within 15 days
from receipt of this notice, then, you will commit the offence under section 138
read with 142 of the Negotiable Instruments Act 1881, punishable with sentence
of imprisonment of two years or sentence of fine that may be double the amount
of cheque or both imprisonment and fine may be imposed.

5. Also, take notice that To Dishonour a Cheque is a Criminal Offence, when the
cheque was given in discharge of a debt.
6. Also, take notice that- Dishonour of a cheque is an economic offence.
Common Cause versus UOI AIR 1996 SC 1916.
7. Also, take notice that Offer of payment after institution of complaint is of no
value and is useless. It is at the most a mitigating circumstance to be taken into
account in award of sentence.
8. Also, take notice that Contrary to established criminal jurisprudence, a person
issuing a cheque which has been dishonoured is presumed guilty and is put
under burden to prove his innocence by establishing that the cheque was given
but not in discharge of any legally enforceable debt. R Sankaralingam versus
UOI (1997) 1 BC 541 (Mad- DB)
9. Also, take notice that Drawer of the cheque is to prove that there is no liability
towards the payee and cheque was not issued towards discharge of any legally
enforceable liability.
V Munikrishaniaha versus Janki Ram Naidu 2005 CrLJ 1093 (AP)
Jagmohan versus State of U P 2005 CrLJ 1361 (All)
10. Also, take notice that In a case, the Complainant refused to compromise with
the accused. The court held that in such a case there cannot be a compromise
and proceedings cannot be quashed even if the whole amount is deposited in the
court. The Court said- any amount paid subsequent to the filing of complaint
will not absolve the accused from criminal liability incurred under section 138
of the NI Act 1881.
Phoolchand saraogi versus State of Rajasthan AIR 2009 (NOC) 959 (Raj)
(2005) 2 SCC 571
11. Also, take notice that When a person is found guilty, it is obligatory on the
court to impose sentence of imprisonment or fine or both.
Thomas versus Kerala State (2004) 3 BC 128 Ker
12. Also, take notice that In a case the Hon'ble SC observed and said- proceedings
under section 138 of NI Act 1881 are not recovery proceedings and these
proceedings are meant to punish the persons who after issuing a cheque,
commits default in honoring the same.
Dhanjit Singh Nanda versus Ram Kumar Agarwal 2009 (2) JCC (NI) 99 (Del)
AIR 1982 SC 1238
(1988) 4 SCC 655

13. Also, take notice that In a case the whole amount covered by the cheque has
been deposited after the institution of the Complaint. The SC held that it does
not absolve the accused from the offence under section 138.
Rajneesh Agarawal versus Amit J Bhalla AIR 2001SC 518
AIR 1999 SC 2182
AIR 1998 SC 1057
14. Also, take notice that In a case, the Hon'ble SC cautioned and said that no
drawer of cheque can be allowed to take Dishonour of cheque issued by him
light heartedly.
Suganthi Suresh Kumar versus Jagdeeshan (2002) 2 SCC 420
AIR 1988 SC 1353
AIR 2001 SC 567
15. Also, take notice that In a case, a cheque for Rs.1,50,000 was dishonoured.
The accused was held guilty. The Court awarded compensation of Rs.3,00,000.
Rs.2,95,000 went to the complainant and Rs.5000 to the State exchequer.
Bhavani versus D C Dodda Xangaiah 2000 CrLJ 3814 (Karn)

16. The consequences that may follow: This is to inform you that your failure to
comply to legal expectation as stated hereinbefore, may compel me/us to
institute Criminal & Civil Proceedings in the Court of Law as permissible under
the law, and the cost of all these litigation will be recovered from you.
Having said above, however, it is seen that the threat of court litigation hardly
instil fear in the minds of offenders of law. Lawyers and litigants known to
blatantly misrepresent facts, frequently make inconsistent statements and utter
obvious lies in court, to prolong the litigation.
Nevertheless, I/we may inform you that there are ample provisions in Indian
Penal Code 1860 to deal with whoever interferes in the administration of justice
and provides for both imprisonment and fine for such interference. Sometime
Courts invoke its Contempt jurisdiction to punish those who mislead the court
by filing false affidavit. I/We will not hesitate to invoke applicable provisions
of law if there is any mischief with the administration of justice is
undertaken.
1.

Section 172 of Indian Penal Code declares that when a Public Servant who
is authorized to issue, issues a legal Summon or Notice or Order, against a
person and that person absconds or avoids to receive that legal Summon or
Notice or Order, commits offence under this section. Primary meaning of
the word absconds is to hide and when a person is hiding from his place
of residence, he is said to be absconding. A Judge is a Public Servant within
the meaning of section 21 of Indian Penal Code.
The punishment: for this offence is imprisonment which may extend to one

month to six month, or may be with Fine ranging from Rs.500 to Rs.1000 or
may be punished both with imprisonment & fine.
Case Law: A person may hide even in his place of residence or away from
it and in either case he would be absconding, when he hides himself. K T M
S Abdul Kader versus Union Of India 1977 CrLJ 1708.
2.

Section 174 of Indian Penal Code declares that When a Public Servant
who is authorized to issue, issues a legal Summon or Notice, or Order or
Proclamation, to call upon a person to attend in person or through agent, at a
particular place and at particular date, and the person in receipt of that legal
Summon or Notice, or Order or Proclamation, intentionally / deliberately
omits to attend, in person or through agent, that place on that date, commits
offence under this section.
The punishment for this offence is imprisonment which may extend to one
month to six month, or punishment may be with Fine ranging from Rs.500
to Rs.1000 or may be punished both with imprisonment & fine.

3.

Section 181 of Indian Penal Code declares that- when a person, who is
under legal obligation, knowingly make any statement, on Oath, or by
affirmation, before a Public Servant, statement which he knew that it is false
or statement which he believes that it is not true, and when he is bound to
state the truth, commits the offence under this section.
The punishment for this offence is imprisonment which may extend to
three years, and will also be fined.

4.

Section 191 of Indian Penal Code declares that when a person, who is
under legal obligation, either on oath or under any provision of law, to state
the truth, to declare upon any subject, knowingly makes false statement, the
statement which he believes that it is false or he believes that it is not true,
commits the offence under this section.
The punishment for this offence is imprisonment which may extend to
Seven years, and will also be fined.
Case Law: Offences relating to making false statement in the sworn
Affidavits comes within the purview of this section.
Kori Gope versus Manmohan Das, AIR 1928 Pat 161 : 29 CrLJ 111 : 106 IC
703
Ranjit Singh versus State of PEPSU, AIR 1959 SC 843 : 1959 CrLJ 1124
Written statements and applications: A person filing a written statement
is bound by law to state the truth and if he makes a statement which is false
to his knowledge or belief, or which he believes not to be true, he is guilty
of this offence. Mehrban Singh (1884) 6 All 626, Padam Singh, (1930) 52
All 856.

5.

Section 196 of Indian Penal Code declares that When a person give or
attempt to give any evidence as true or genuine evidence, knowing that the
evidence he is giving is false or fabricated, to obstruct in the course of
justice, commits the offence under this section.

The punishment for this offence is imprisonment which may extend to

Seven years, and will also be fined.
6.

Section 199 of Indian Penal Code declares that when a person, voluntarily
makes a declaration to a Court or to any public Servant, who are bound to
take such declaration as evidence, and the person knowingly makes false
statement in such declaration, the statement which he believed it to be false
or he believed it to be not true. Also, the false statement so made must touch
a point material to the object of such declaration, commits the offence under
this section.
The punishment for this offence is imprisonment which may extend to
Seven years, and will also be fined.
Case Law: False Affidavit: M S Jaggi 1983 CrLJ 1527 (Ori)
Deputy GM Inter State Bus Terminal versus Smt Sudarshan Kumari, 1997
CrLJ 1931 (SC) : AIR 1997 SC 1902 : 1997 (3) SCC 496 : Gadhi versus
Krishnaraja, 2000 CrLJ 1590 (Mad)
Baddu Khan versus Emperor, AIR 1928 All 182 : 29 CrLJ 336

17. Also, take notice that I/we may institute Insolvency Petition against you, if the
law permits to do so, if payment is not made.In a case, insolvency Petition was
filed covering the dishonoured cheque amount. It was held that mere
presentation or pendency of Insolvency petition would not disentitle the
complainant to seek for remedy by way of penal action. C T Thangaraj versus
Marugesan 1999 CrLJ 3436 (Mad)

18. Thanking you in the anticipation of your effective action in this regard.
With Regards
xyz

Attachments( if any)
(a)
(b)

It is desirable to give notice by Regd AD or by Speed Post.

It is very important to inform the readers that if a person knowingly issues a Notice for
any claim to which he is not entitled to under the law, and if by the Notice he is going
to cause mental harassment or mental alarm to the recipient of the Notice, he may be
alleged to have committed the offence of criminal intimidation under section 503 of
IPC 1860.
DISCLAIMER: Though due care has been observed in framing this format, yet some
discrepancies may have entered in. The Writer incurs no liability of whatsoever nature,
if readers incurs any loss of any nature, while using this material. The readers are
strongly advised to obtain guidance of Legal experts or of any other person before they
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It is extremely requested that if you find any discrepancy of any nature in this format,
or if you have suggestion to improve upon this, please inform me at
legallyspeaking.jalan@gmail.com. If you find this format useful, consider to share it
with your friends & relatives.
Thanks. Sandeep Jalan, Advocate, Mumbai, India.