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Notice for 138

A legal notice must be delivered to the cheque's drawer in the event that the check is returned owing to insufficient funds in the account. Here is a sample legal notice format. Within the allotted period, the legal notification must be served.

The debtor must also be given enough time, as outlined in the Negotiable Instruments Act, to pay the amount of the check and associated costs. A complaint may be brought under Section 138 of the Negotiable Instruments Act if the accused failed to pay the required sum within the allotted time.

Notice-for-138

The bank will return the check along with a return memo outlining the reason for the return when the check is presented to the bank for payment and it bounces. If the bank rejects the check because there are not enough funds, the drawer may be given notice and may face legal repercussions.

The payee should issue a legal notification to the cheque's drawer requesting payment when the check fails owing to insufficient funds and is returned by the bank. In India, violating Section 138 of the Negotiable Instruments Act, 1881 is a check bounce offense.

The legal notice serves as a warning to the cheque's drawer that failure to pay the specified sum would result in legal action being brought against him under the Negotiable Instruments Act in the appropriate court.

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