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This notice is sent by the Payee(person receiving money) to the Drawer(person writing the cheque) in case cheque issued to him has bounced.
It is necessary to issue it if the payee wants to give a chance to the drawer for repaying the money. The notice has to be sent within 30 days from the date of receiving "Cheque bounce Memo" from the bank. The notice should also specify the cheque amount that has to be paid to the payee within 15 days from the date of receiving of notice by the drawer.
The notice cannot be made enforceable. However, it must be given be signed by person sending the notice. It serves as a record for any legal action in the future. You as a payee may use it if you have received a cheque from the drawer which has bounced due to some reason. Now, you want to send a notice to the drawer (person who wrote the cheque) asking him/her to do the payment as failing to do so may result in legal action being taken by you.
Users who create Notice For Dishonor Of Cheque often require the following list of additional agreements.