Notice by an individual payee to the individual drawer when more than one cheque is dishonoured with the endorsement “Account Closed” on the returning memo

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 Brass Rods (hereinafter called goods) and I am the main stockist and dealer of the same. I am doing the business of dealing in Brass Rods in my personal name.

2. That you have been purchasing the said rods 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 permitted you to the taking of 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 and issued the cheques with the following description :

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

4. 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.

5. That the above stated cheques have been dishonoured on their presentment with the endorsement “Account Closed” on ………… (Date) vide Returning Memo Nos. …………, …………., …………., …………. of which I got the information on …………… (Date) from the bank. That in fact you didn’t have sufficient funds in your account to honour the cheque you had issued and to avoid the liability under section 138 of the Negotiable Instruments Act, 1881 as amended upto date, you got your account closed before I could present the same for encashment. Had I known that on their presentment the cheques so issued would be dishonoured I would never have delivered those goods.

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

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

8. 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.

9. That  it is now clear that your intentions were not good when you issued the above stated cheques as you had issued the cheque for the amount which you did not have in your account nor any arrangement had been made for such amount and again you got your account closed deliberately to avoid the penal liability that may arise under section 138 of the Negotiable Instrument Act, 1881, with the result that the cheques stood dishonoured.

10. That as the cheques are dishonoured for the reason of “insufficiency of funds”, which you deliberately tried to conceal or evade by getting your account closed, 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 for which the cheques so dishonoured were issued i.e., 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, 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)………………..