A legal notice for payment is a formal written demand sent by an advocate on your behalf to the debtor, stating the facts of the debt, the amount with interest, the legal provisions relied on, a period to pay (commonly 15 days), and the action that will follow. It is sent to the registered office and known addresses by registered post with acknowledgement due, and as an e-notice. For a bounced cheque, it must be sent within 30 days of the return memo. FundRaksha sends notices within 24 hours of receiving documents, with no upfront fee.
What the notice must contain
- Parties. Your business and the debtor’s full legal name, constitution and registered address, from the GST and MCA records
- Facts. The contract or orders, the supplies or services, the dates of delivery and acceptance, the invoices
- The demand. The principal, the interest and its basis (MSMED Act s.16, the contract clause, or a reasonable rate), and the total
- Legal basis. The provisions relied on: Contract Act, MSMED Act, NI Act s.138 for cheques, Limitation position if relevant
- The period. A clear number of days to pay or respond, commonly 15
- The consequence. The specific action that will follow: Samadhaan reference, Section 138 complaint, summary suit, with costs and interest
- Reservation of rights and the advocate’s signature and enrolment details
For a Section 138 notice, the demand for the cheque amount must be stated separately and clearly, even if other sums are also claimed.
Who sends it, and to whom
You can send a demand yourself, and you should, as the first step. A legal notice is sent by an enrolled advocate, and that is what gives it weight inside the buyer’s organisation: it is logged, reported and acted on. It is addressed to the entity at its registered office or principal place of business, marked to the directors, partners or proprietor, and copied to the email on record. For a company whose cheque bounced, the directors in charge are named under Section 141. See how to recover money from a company for identifying the right entity.
How it is served
- Registered post with acknowledgement due to each address: the postal receipt, tracking and acknowledgement (or the “refused” or “unclaimed” endorsement) are proof of service
- E-notice by email to the official address, and often by WhatsApp to the known number, with delivery confirmation retained
- Courier as an additional channel where useful
Service is complete when the notice is delivered or the addressee refuses it. A buyer who does not collect a registered letter is treated as served. See customer avoiding calls and buyer blocked my number.
What happens after the notice
| Buyer’s response | What follows |
|---|---|
| Pays | Matter closed; a receipt and, if needed, a no-dues letter |
| Proposes a plan | Negotiated and documented with cheques and an acceleration clause |
| Disputes | The dispute is now in writing; evidence is exchanged and the matter proceeds to the right forum |
| Silence | Filing: MSME Samadhaan, Section 138 complaint or summary suit, as the notice stated |
India's No.1 B2B payment recovery company, trusted by 1,000+ businesses; the advocate who sends the notice handles every outcome. See how to recover money without court.
Mistakes that weaken a notice
- Wrong or incomplete legal name and address
- Vague amounts, or interest claimed without a basis
- Threats of criminal action where none is available
- Abusive language
- Missing the 30-day window for a cheque
- Sending it and then doing nothing when the period ends
A notice is a promise of consequences; keep the promise. Book a free consultation and FundRaksha will have the notice drafted and dispatched within 24 hours of receiving your documents, with the follow-through built in. See payment recovery.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.