A payment recovery notice must identify the parties exactly, state the facts with dates, attach or itemise the statement of account, compute interest, cite the legal basis, make a clear demand with a time limit (15 days for Section 138; 7 to 15 days otherwise) and state the consequences of non-payment. FundRaksha’s advocates send it within 24 hours of complete documents, as an e-notice and by registered post.
Structure of the notice
- Heading and parties: advocate’s letterhead; the buyer’s exact legal name, registered office, GSTIN and CIN; the directors or partners where appropriate.
- Facts: the order, the supply or service with dates and proof, acceptance, the invoices and due dates.
- Statement of account: invoice-wise principal, payments received, balance.
- Interest: statutory (MSMED Act) or contractual, computed to date and continuing.
- Legal basis: Sections 15 and 16 of the MSMED Act; Section 138 of the NI Act for a cheque; the contract and arbitration clause; Section 43B(h) of the Income-tax Act as a consequence for the buyer.
- Demand and time: pay the stated sum within the stated days to the stated account.
- Consequences: Samadhaan reference, Section 138 complaint, summary suit or arbitration, with costs and interest.
- Reservation of rights and signature.
Delivery and proof
Send by registered post with acknowledgement due (or speed post) to the registered office and the place of business, and by email and WhatsApp to known addresses the same day. Keep the postal receipts, tracking, delivery confirmation and screenshots. For Section 138, the notice must be in writing and sent within 30 days; e-mail and WhatsApp notices have been accepted as valid service by courts when delivery is proved, but the postal copy remains standard practice.
Common mistakes
- Wrong legal name or addressing a trade name instead of the entity
- Demanding a round figure instead of the exact statement of account
- For Section 138: demanding more or less than the cheque amount without separating the cheque demand
- No time limit, or an unrealistic one
- Threats or language that could be read as intimidation
FundRaksha drafts every notice from your documents and the buyer’s records; the free consultation comes first, and our fee is 30% only on recovery.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.