Legal notice for an unpaid invoice: what to include and how to send it

Is a legal notice compulsory?

For an ordinary civil recovery suit between private parties, a notice is not strictly required by law, but it is standard practice and courts expect to see that you demanded payment. In some situations a notice is mandatory:

• Cheque bounce: a written demand within 30 days of the bank's return memo is a legal condition for a Section 138 case. See the Section 138 process and timeline.
• Suits against the government: two months' notice under Section 80 of the Civil Procedure Code.
• Insolvency by an operational creditor: a demand notice in the prescribed form before applying to the NCLT.

What the notice should contain

1. Name and address of the sender (you) and the buyer, with GSTIN where available
2. The business relationship: what was ordered, by which purchase order, and when
3. Each unpaid invoice: number, date, amount, due date
4. Proof of supply: delivery challan, e-way bill or acknowledgment
5. Payments received and the balance outstanding
6. Earlier reminders and any admission or promise by the buyer
7. Interest claimed and the basis for it: the contract, or Section 16 of the MSMED Act if you are a micro or small enterprise
8. A clear demand: the total amount to be paid and the deadline
9. The action that will follow: MSME Samadhaan, a recovery suit, arbitration or a Section 138 complaint, as applicable
10. Date, signature of the advocate and list of enclosures

A simple format

• Heading: "Legal notice for recovery of ₹[amount] due under invoice no. [x] dated [date]"
• Paragraph 1: who the client is and what business they do
• Paragraph 2: the order and the supply, with dates and documents
• Paragraph 3: the invoices, the credit period and the amount now overdue
• Paragraph 4: reminders sent and the buyer's response
• Paragraph 5: the legal position and the interest payable
• Paragraph 6: the demand: pay ₹[total] within [x] days of receiving this notice
• Paragraph 7: consequences of not paying, and that costs of the notice are also claimed

Keep the tone factual. Do not exaggerate the amount or make threats outside the law; the notice may be read by a judge later.

How to send it and how many days to give

Send the notice by registered post with acknowledgment due or speed post to the buyer's registered and business addresses, and also by email. WhatsApp can be used as an additional mode. Keep the postal receipt, tracking report and email record.

For ordinary dues, 7 to 15 days is the usual deadline. For a bounced cheque the law fixes it: the drawer has 15 days from receiving the notice.

What happens after the notice

• The buyer pays or offers a plan. Record the settlement in writing. This is the most common outcome.
• The buyer replies disputing the claim. Your advocate answers the points and you decide whether to negotiate or file.
• The buyer ignores it. You move to the forum named in the notice. The unanswered notice becomes part of your evidence.

Sending a notice through FundRaksha Legal

Share the invoice and delivery proof, and a dedicated advocate sends the notice as an e-notice within 24 hours of complete documents, followed by registered post. The same advocate then calls the buyer and negotiates. There is no upfront fee; the fee is 30% of the amount recovered. See pricing or start a case.

Frequently asked questions