Question
Q: Should notice include cheque details and transaction purpose?
Answer
A:
Yes, a legal notice under Section 138 of the Negotiable Instruments Act, 1881 must include complete cheque details and the purpose of the transaction for which the cheque was issued.
Cheque Details to Mention in the Notice
Cheque number
Date of the cheque
Amount mentioned on the cheque
Name of the bank and branch on which the cheque was drawn
Date of dishonour or cheque return memo issued by the bank
Including these details ensures that the drawer understands clearly which cheque is being disputed.
Transaction Purpose in the Notice
It is also advisable to state the purpose for which the cheque was issued, such as repayment of a loan, payment for goods supplied, settlement for services rendered, or as a security deposit or advance.
Mentioning the transaction purpose helps to establish that the cheque was issued against a legally enforceable debt or liability, which is a mandatory condition under Section 138 NI Act.
Why This is Important
It strengthens the legal validity of the notice.
It prevents the accused from denying the purpose of the cheque.
It helps the court establish that the cheque was issued against a legally recoverable debt.
It ensures compliance with procedural requirements of Section 138.
Key Takeaway
A cheque bounce notice must include cheque details such as cheque number, date, amount, bank, and the transaction purpose. This ensures the notice is legally valid, precise, and enforceable in court.
.By Advocate BK Singh
(Delhi High Court)
