Reply to Cheque Bounce Notice (Section 138) Format

[ON THE LETTERHEAD OF THE ADVOCATE]

By Registered Post A/D & Email

Date: [DD/MM/YYYY]

To,
[Advocate Name of the Payee]
[Address]

AND

[Name of the Payee]
[Address]

Subject: Reply to notice dated [DD/MM/YYYY] under Section 138 of the Negotiable Instruments Act, 1881 regarding cheque no. [Cheque Number] dated [DD/MM/YYYY] for Rs. [Amount].

Sir/Madam,

Under instructions from my client, [Drawer Name], of [Address], I reply to your notice dated [DD/MM/YYYY], received on [DD/MM/YYYY], as follows:

1. That the allegations in your notice are denied, save what is expressly admitted.

2. That my client denies that the cheque in question was issued in discharge of any legally enforceable debt or liability on the date of its presentation. [Choose the facts that apply:]
   (a) The cheque was handed over as security at the time of [loan / agreement dated ___] with the clear understanding that it would not be presented; the underlying liability [was never crystallised / stood discharged on ___].
   (b) The entire amount due was repaid on [DD/MM/YYYY] by [mode of payment, reference no.], and nothing remained payable.
   (c) The cheque was signed blank and the amount of Rs. [Amount] has been filled in without my client's authority and in excess of any amount due.
   (d) The cheque was [lost / stolen / misused], and my client had informed [bank / police] on [DD/MM/YYYY].

3. That, without prejudice, your notice is defective because [it was issued beyond 30 days of the return memo / it demands an amount different from the cheque amount / it was not sent to my client's correct address].

4. That the presumption under Section 139 of the Act stands rebutted on these facts, and any complaint filed on the basis of your notice would be misconceived.

You are therefore called upon to return the cheque no. [Cheque Number] to my client within fifteen (15) days and to refrain from filing any complaint. If you do so, my client shall defend it and seek costs, and reserves the right to take action for misuse of the cheque.

All rights and contentions of my client are reserved.

[Advocate Name]
[Enrolment No. / Contact]