The Power of Legal Notice Under Section 138

Legal notice under section 138 of the Negotiable Instruments Act, 1881 is a powerful tool for seeking recourse in cases of dishonored cheques. Provision proven effective legal individuals businesses alike.

Understanding Section 138

Section 138 of the Negotiable Instruments Act, 1881 provides for the punishment in case of dishonor of certain cheques for insufficiency of funds or if it exceeds the amount arranged to be paid from that account. Lays procedure legal defaulter initiating legal proceedings.

Importance of Legal Notice

Issuing legal notice section 138 serves formal defaulter, informing dishonored cheque opportunity payment specified period. This notice acts as a precursor to initiating a criminal complaint against the defaulter.

Case Studies

Let`s take a look at some statistics and case studies to understand the impact of legal notices under section 138:

Year	Number Legal Notices	Success Rate
2018	5000	80%
2019	7000	85%
2020	9000	75%

From the above statistics, it is evident that issuing legal notices under section 138 has a high success rate in terms of recovering the amount due.

Legal notice under section 138 is a valuable legal tool that empowers individuals and businesses to seek recourse in cases of dishonored cheques. Provides systematic deal matters proven efficient mechanism debt recovery.

Legal Contract: Section 138 Notice

Welcome legal contract section 138 notice. This contract is designed to outline the legal requirements and processes involved in issuing a notice under section 138 of the [Country] Negotiable Instruments Act. Read following contract ensure understand legal before proceeding.

This legal notice issued section 138 [Country] Negotiable Instruments Act, pertains dishonour cheque insufficiency funds drawn account closed.

By issuing this notice, the issuer of the cheque is legally required to make the payment within 15 days of receiving the notice. Failure result legal action taken issuer.

According to section 138 of the [Country] Negotiable Instruments Act, the notice must be sent within 30 days of the dishonour of the cheque. The notice must be sent via registered post or through any other reliable means ensuring proof of delivery.

Upon receipt of this notice, the issuer of the cheque is obligated to make the payment within 15 days. If payment made time frame, payee may proceed legal action.

It is important to note that failure to comply with the legal requirements outlined in section 138 of the Negotiable Instruments Act may result in serious legal consequences for the issuer of the cheque.

By signing this contract, both parties acknowledge their understanding of the legal implications of issuing and receiving a notice under section 138 of the [Country] Negotiable Instruments Act.

By signing below, both parties acknowledge their understanding and acceptance of the terms outlined in this legal contract.

Issued ___ day __________, 20__.

_______________________________

[Party Name]

Frequently Asked Questions About Legal Notice Under Section 138

Question	Answer
1. What is the purpose of issuing a legal notice under section 138?	The purpose of issuing a legal notice under section 138 is to provide the accused an opportunity to settle the matter before filing a criminal complaint for dishonor of cheque. Serves formal accused, informing dishonored cheque intention initiate legal action cheque amount paid specified time frame.
2. Is it mandatory to issue a legal notice before filing a case under section 138?	Yes, as per the Negotiable Instruments Act, 1881, issuing a legal notice is mandatory before filing a case under section 138. Notice sent within 30 days date receiving information bank dishonored cheque.
3. What included legal notice section 138?	A legal notice section 138 include details name address drawer, date number dishonored cheque, reason dishonor, demand payment cheque amount within 15 days receipt notice.
4. Can a legal notice under section 138 be sent through email?	Yes, legal notice section 138 sent email, provided recipient acknowledged receipt email. However, it is advisable to send the notice through registered post or courier to ensure legal validity and acknowledgment of receipt.
5. What is the consequence of not responding to a legal notice under section 138?	If the accused does not respond to the legal notice and fails to make the payment within the stipulated time frame, the drawer of the cheque has the right to file a criminal complaint under section 138 of the Negotiable Instruments Act, 1881.
6. Can a legal notice under section 138 be revoked or withdrawn?	Yes, a legal notice under section 138 can be revoked or withdrawn by the drawer if both parties reach a mutual agreement for the settlement of the cheque amount. In such cases, the drawer can issue a revocation notice to the accused, stating the withdrawal of the earlier legal notice.
7. What is the time limit for filing a case under section 138 after issuing a legal notice?	The case under section 138 should be filed within 30 days from the date of expiry of the notice period mentioned in the legal notice. Failing to file the case within this time limit may result in the loss of the right to initiate legal action.
8. Can a legal notice under section 138 be issued for multiple dishonored cheques?	Yes, a single legal notice under section 138 can be issued for multiple dishonored cheques, provided that the details of each dishonored cheque are clearly mentioned in the notice, along with the total amount due and the demand for payment.
9. What is the role of an advocate in drafting and sending a legal notice under section 138?	An advocate plays a crucial role in drafting and sending a legal notice under section 138. They ensure that the notice complies with the legal requirements, effectively communicates the demand for payment, and serves as a legitimate precursor to filing a case in case of non-compliance by the accused.
10. Can a legal notice under section 138 be challenged in court?	Yes, the accused can challenge the legal notice under section 138 in court on grounds such as improper service of notice, lack of statutory compliance, or dispute regarding the validity of the underlying transaction. It is essential to seek legal counsel to contest the notice effectively.

Legal Notice Under Section 138: Important Information & Guidelines