Negotiable instruments act, 1881

Please advise me on this, in our company we give products to distributors on credit by taking a undated cheque as a security. In the cheque the distributor only mentions the name of the company and signature. And when the distributor defaults in making the payment, we incorporate the amount and date and get it dishonored from the bank and issue a notice U/S 138 of NI Act. Even after recieving the notice the distributor is reluctant to make the payment then we initiate a case u/s 138 of the NI Act. My query over here is, is this legally allowed to initiate a case like this. can anyone help me with any rulings or section under NI Act where it is mentioned it is allowed.