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Negotiable Instrument
Download NI Act templates: Section 138 notices, advocate notices, and complaints for individuals, firms, banks—plus limitation, filing, and jurisdiction guidance.
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Quick Overview
All templates are provided for reference and should be reviewed by legal professionals before use.
Frequently Asked Questions
Common questions about Negotiable Instrument legal templates
What is required to issue a valid Section 138 cheque bounce notice?
The payee/holder in due course must send a written demand notice within 30 days of receiving bank information of dishonour, demanding cheque amount payment.
What are the key timelines to file a Section 138 complaint?
Present cheque within validity (generally 3 months), send demand notice within 30 days of dishonour info, allow 15 days for payment, then file complaint within one month from the cause of action date per Section 142(1)(b). Courts may condone delay for sufficient cause.
Who can file the complaint under Sections 138/142 NI Act?
The payee or holder in due course files a written complaint; firms/companies can file through authorised persons or power of attorney where permissible.
Where should a Section 138 complaint be filed (territorial jurisdiction)?
Per Section 142(2), jurisdiction lies where the payee’s bank branch (through which cheque is presented for collection) is located, or where the drawee bank branch of the drawer is located, as applicable.
Is a separate notice required to directors when a company’s cheque bounces?
Notice to the company drawer suffices; individual notices to directors are not mandatory for Section 138, though vicarious liability of responsible officers is tested separately.
Can the court take cognizance if the complaint is filed after one month from cause of action?
Yes, the Section 142 proviso allows courts to take cognizance after the prescribed period if the complainant shows sufficient cause for the delay.
What must a Section 138 complaint typically contain?
Parties’ details, cheque particulars, presentation and dishonour memo, statutory notice with proof of service, lapse of 15 days without payment, and averment of legally enforceable debt/liability.
Can cheque bounce cases be compounded (settled) and at what stage?
Section 147 permits compounding; the Supreme Court has allowed compounding at various stages with structured costs, but complainant consent is generally required and cannot be compelled.
How is the ‘cause of action’ computed under Section 138?
Cause of action arises on the day after expiry of 15 days from receipt of the demand notice by the drawer; the one-month filing period under Section 142 runs from that date.
What supporting documents accompany the complaint?
Original cheque/return memo, copy of legal notice, proof of dispatch and service, bank statements or ledger, authority documents for firms/companies, and any power of attorney.