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- NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT FOR DISHONOR OF CHEQUE
Description
Notice under section 138 of Negotiable Instruments Act for Dishonour of Cheque
This is a "Readymade Format for Notice under section 138 of Negotiable Instruments Act for Dishonour of Cheque ".
Legally required caluses are already in agreement Format in addition to, if is required, then you can add or remove the conditions.
A Notice under Section 138 of the Negotiable Instruments Act is sent to the drawer of a dishonored cheque as a formal demand for payment. The purpose of this notice is to inform the drawer that the cheque they issued has been dishonored by the bank and that they are legally liable to make the payment within a specified time frame, typically 15 days from the receipt of the notice.
Sending a notice under Section 138 of the Negotiable Instruments Act is a prerequisite for initiating legal proceedings for the dishonor of a cheque. If the drawer fails to make the payment within the specified time frame, the payee may file a complaint in a criminal court for the offence of dishonor of cheque.
This notice is sent to the drawer as a formal way of informing them that the cheque they issued has been dishonored and as a reminder of their legal liability to make the payment. It also provides them with an opportunity to make the payment before any legal action is taken against them.
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