Notice by an individual payee to the individual drawer when there is some claim also other then the dishonoured cheques and the cheques have been dishonoured more than once

Name : ……………………
            ……………………
Office: ……………………
            ……………………
Residence: ……………………
            ……………………
Date :   ……………………

Regd. A.D./U.P.C
To

Name ………………………..
Address………………………
Subject : Dishonour of Cheque

Sir,

I have to serve you with the following legal notice :

1. That as you know that I am running the business of Bales of Cotton (hereinafter called goods) and I am the main stockist and dealer of the same. I am doing the business of dealing in Bales of Cotton in my personal name

2. That you have been purchasing the said Bales of Cotton from me since………. (give the date of first dealing or the estimated period of relationship) and due to the faith I reposed in you, I started allowing you to take the delivery of goods from me against the issue of cheques for the amount payable in respect of the goods purchased.

3. That besides the goods you have paid for, you purchased goods with the following description :

Invoice No.	Date of Invoice	Amount	Status of ST From	
(i)				
(ii)				
(iii)				
(iv)				

4. That against the above mentioned goods you have issued the cheques with the following description:

Cheque No.	Invoice No.	Date of Cheque	Amount	Drawee Bank	
(i)					
(ii)					
(iii)					
(iv)					

5. That the total amount of goods you have purchased was Rs. …………. out of which you have issued the cheques totaling to Rs. ……………. Thus, other than the cheques as stated above, Rs. ……. also is due in my favour from you.

6. That above said cheques were issued at the time of delivery of goods promising that on the presentment of the said cheques they will be honoured and the balance was to be paid by you within a period of one week from the date of delivery of goods.

7. That the above stated cheques were dishonoured on their presentment with the endorsement “Insufficiency of Funds in the Account of the Drawer” on ……….. (Date) vide Returning Memo Nos. …………., …………., …………, ………… of which I got the information on ………… (Date) from the bank. However, when I informed about the same to you personally you requested me to present again the same cheques after a week’s time. I did so but in vain as this time also the cheques were dishonoured for the reason of “insufficiency of funds in the account of the drawer”. This was for the third time when I presented the above stated cheques on your request which are again dishonoured for the same reason. Had I known that on their presentment the cheques so issued would be dishonoured I would never have delivered those goods.

8. That in all, the cheques which were issued by you in discharge of your liability/debt have been dishonoured for the reason of insufficiency of funds.

9. That thereafter I have been running from pillar to post to contact you but you have been avoiding the same.

10. That now I have understood that you issued the cheques, to me against the delivery of goods for the amount which you never had in your account at the time of issue of cheques and, therefore, it can be inferred that you took the delivery of such goods by deceiving me when you issued the cheques knowing fully well that you had insufficient funds in your account to honour the same or the amount of the cheques exceeded the arrangement that you had made with your banker.

11. That it is now clear that your intentions were not good when you issued the above stated cheques as you had issued the cheques for the amount which you did not have in your account nor any arrangement had been made for such amount with the result that the cheques stood dishonoured.

12. That as the cheques are dishonoured for the reason of “insufficiency of funds”, you may be held liable, civilly as well as criminally, particularly under section 420 of the Indian Penal Code, 1860, section 138 of the Negotiable Instruments Act, 1881 as amended upto date as also under Order XXXVII of the Code of Civil Procedure, 1908 and for this purpose this mandatory notice is served upon you.

I, therefore hereby call upon you to pay the amount of Rs. ……….. for which the cheques so dishonoured were issued to avoid liability under section 128 of Negotiable Instruments Act and the balance due to the tune of Rs. ………… aggregating to Rs. ……….. together with interest calculated at the rate of 24% per annum which comes to Rs. ……. and Rs. …….. towards the cost of this notice, within a period of 15 days from the date of receipt of this legal notice, failing which I am determined to take appropriate legal action, civil as well as criminal, particularly under section 138 of the Negotiable Instruments Act, 1881 as amended upto date for dishonour of cheques, section 420 of the Indian Penal Code, 1860 and Order XXXVII of the Code of Civil Procedure, 1908. You shall be held responsible for all the costs and consequences for which please take this notice.

Yours faithfully

Sd/-

(Name)…………….