Section 138 NI Act Legal Notice: Format, Timeline & Essentials
The statutory demand notice is a mandatory precondition for a Section 138 complaint. Defects in the notice or its timing are the most common reason complaints are dismissed at the threshold.
Statutory timeline
- Present cheque within validity period (3 months)
- Issue demand notice within 30 days of receiving dishonour information
- Drawer has 15 days from receipt to make payment
- File complaint within 30 days after the 15-day period lapses
Mandatory contents
- Cheque number, date, amount, drawer, drawee bank
- Date and reason of dishonour per return memo
- The underlying legally enforceable debt or liability
- Clear demand for the cheque amount
- Statement that Section 138 action follows if payment is not made within 15 days