Negotiable Instrument Act, 1881

Sec 138 – 2 years or with fine twice the amount of cheque, the
cheque has been presented to the bank within 3 months from the
date on which it is made.

- Gives notice in writing within 30 days from the receipt of the

information
- Fails to pay within 15 days
- Files a suit in 30 days

Sec 142 – Cognizable offence, in writing, JMFC =MM

Sec 143 – Power of court to try cases summarily

Sec 143A – Interim Compensation, shall not exceed 20%

Sec 144 – Mode of service, Speed post

Sec 145 – Evidence on affidavit

Sec 146 – Bank slip prima facie evidence

Sec 147 – Offence to be Compoundable

Sec 148 – Power of appellate court to order interim minimum of

20% in addition of sec 143A. shall be deposited in 60 days from the
date of order.

If the cheque is returned unpaid from the bank, the bearer should
collect returned cheque and cheque return memo from the bank
immediately. A notice should be served to the drawer within 30
days of return of the cheque informing the drawer about dishounour
of the cheque and should make demand of cheque amount within 15
days of receipt of the notice. If 30 days are already elapsed after
return of the cheque the drawee may present the cheque again in
the bank within the stipulated period.

It would be better to serve the notice through a lawyer.

To
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———————————

Sub.:- Legal notice under Section 138 of the Negotiable Instrument

Act, 1881

Sir,

Under the instructions and authority from our client ___ having their
office at ___, we serve upon you the following notice of demand
under Section 138 of the Negotiable Instruments Act.

The cheque no.___ dated ___ for an amount of ___ drawn on the ___
branch, was issued by you in lieu of discharge of your financial
liabilities to us.

The said cheque was presented for payment, but the same has been
returned by your bank with the endorsement ___. The Bank has
informed us through their cheque return memo dated ___.

That inspite of many telephonic reminders and personal visits by

the representative of our client to your office, you failed to make the
payment due to our client.

You are now requested to make the payment of the above-said

amount within 15 days of this notice in accordance with the
provisions of Section 138 of Negotiable Instrument Act failing which
the criminal proceedings will be initiated against you as
contemplated under the above-said section.

This is without prejudice to all other legal rights and remedies

available to our client for the above-stated purpose.(optional)

Kindly take notice.

Yours

Date
 IN THE COURT OF METROPOLITON MAGISTRATE/ JMFC

AHMEDABAD/ GUJARAT

CRIMINAL COMPLAINT NUMBER ___/2023

Name of parties
Complainant

Vs

Name of parties
Accused

Complaint under Section 138 of the Negotiable Instrument Act, 1881

The Complainant above named most respectfully showeth:

1. That the complainant is ____________

2. That the accused is the ____________
3. Accused had collected goods worth Rs_____ from the
complainant on ______ and promised to pay for the same latter.
4. Accused handed over a cheque on ______ bearing cheque no
_____ dated _______ for Rs____ drawn on bank _____ towards the
complainant for the payment of the goods received to the
accused by the complainant.
5. That the complainant deposited the said cheque in his account
with (bank name) on _____ but the same was dishonoured by
the bank dated _____ with remark ________. The original
returning memo dated ____ in respect of the said cheque is
annexed hereto as annexure ___.
6. That the vide letter dated ____ , the complainant called upon
the accused to make the payment of the amount covered by
the dishonoured cheque. The said letter was sent to the
accused by registered AD. However, accused failed to pay the
amount to the complainant.
7. That the cheque in question were returned unpaid because
______ and as such the accused is liable to be prosecuted and
punished under section 138 of the Negotiable Instrument Act,
1881.
8. That the complainant has complied with all the requirements
of Section 138 of NI ACT 1881, the cheque was presented to
the bank on _______, after receiving the return memo from the
bank, a notice was served to the accused through registered
AD on _______ for the demand of the payment within 15 days
from the date of receipt of the notice. The accused failed to
make the payment within 15 days of the said notice and as
such the complaianant has approached this honourable court
within one month of the date of the cause of action. The
complain is therefor within time.
9. That the honble court has jurisdiction to entertain and try the
present complaint because the offence is committed within
the jurisdiction of this Honble court. The dishonour cheque
was drawn on _______ bank.

It is therefore most respectfully prayed that this Honble court

may be pleased to summon the accused under section 138 of
the Negotiable Instrument Act, 1881 and the accused be tried
and punished in accordance with the law for the aforesaid
offence committed by him.

Place ______ Complainant

through Advocate
 Date ______

List of Documents to be given

1. Copy of the resolution authorizing Complainant's Attorney (in

case of Company, firm etc).
2. Original dishonored cheques
3. Returning memo dated _____
4. Copy of legal notice dated _______
5. Postal Receipt No. ______ dated ______
6. Limitation Document (This is required in some court, attach, If
applicable)

IN THE COURT OF JUDICIAL MAGISTRATE FIRST CLASS

VADODARA/ GUJARAT

CRIMINAL COMPLAINT NUMBER ___/2023

Name of parties
Complainant

Vs

Name of Company
Accused

Complaint under Section 138 r/w Section 141 of the Negotiable

Instrument Act, 1881

The Complainant above named most respectfully showeth:

1. That the complainant is ____________

2. That the accused is the ____________
3. Accused had collected goods worth Rs_____ from the
complainant on ______ and promised to pay for the same latter.
4. Accused handed over a cheque on ______ bearing cheque no
_____ dated _______ for Rs____ drawn on bank _____ towards the
complainant for the payment of the goods received to the
accused by the complainant.
5. That the complainant deposited the said cheque in his account
with (bank name) on _____ but the same was dishonoured by
the bank dated _____ with remark ________. The original
returning memo dated ____ in respect of the said cheque is
annexed hereto as annexure ___.
6. That the vide letter dated ____ , the complainant called upon
the accused to make the payment of the amount covered by
the dishonoured cheque. The said letter was sent to the
accused by registered AD. However, accused failed to pay the
amount to the complainant.
7. That the cheque in question were returned unpaid because
______ and as such the accused is liable to be prosecuted and
punished under section 138 of the Negotiable Instrument Act,
1881.
8. That the complainant has complied with all the requirements
of Section 138 of NI ACT 1881, the cheque was presented to
the bank on _______, after receiving the return memo from the
bank, a notice was served to the accused through registered
AD on _______ for the demand of the payment within 15 days
from the date of receipt of the notice. The accused failed to
make the payment within 15 days of the said notice and as
such the complaianant has approached this honourable court
within one month of the date of the cause of action. The
complain is therefor within time.
9. That the honble court has jurisdiction to entertain and try the
present complaint because the offence is committed within
the jurisdiction of this Honble court. The dishonour cheque
was drawn on _______ bank.

It is therefore most respectfully prayed that this Honble court

may be pleased to summon the accused under section 138 of
the Negotiable Instrument Act, 1881 and the accused be tried
and punished in accordance with the law for the aforesaid
offence committed by him.

Place ______ Complainant

through Advocate

Date ______