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,

For and on behalf on my client M/s. …………….…………… (Name and address of business), I have to serve you with the following legal notice :

1. That as you know that my client is running the business of Brass Rods (hereinafter called goods) is the main stockist and dealer of the same. He is doing the business of dealing in Brass Rods in his personal name(s).

2. That you have been purchasing the said rods from my client(s) since………. (give the date of first dealing or the estimated period of relationship) and due to the faith my client(s) reposed in you, they started allowing  you to take the delivery of goods from them 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 to the tune of Rs. ……… (In words ………………) vide invoice No. ……………. dated ……………, with the Form No. ST-35 due and all documents sent directly.

4. That against the above said invoice you issued in the favour of my client(s) a cheque bearing No. ………………, dated ……………, drawn on ……………. (name of the bank of which the cheque is drawn) at the time of delivery of goods promising that on the presentment of the said cheque it will be honoured.

5. That the above stated cheque has been dishonoured on its presentment with the endorsement “Insufficiency of Funds in the Account of the Drawer” on …………. (date) vide Returning Memo No. ……….. of which my client(s) got the information on …………….(date) from the bank. Had my client(s) known that on its presentment the cheque so issued would be dishonoured, my client(s) would never have delivered those goods.

6. That in all, the cheque which was issued by you in discharge of your liability/debt has been dishonoured for the reason of insufficiency of funds.

7. That thereafter my client(s) have been running from pillar to post to contact you but you have been neglecting the same.

8. That having understood by my client(s) that you issued the cheque to my client(s) against the delivery of goods for the amount which you never had in your account at the time of issue of cheque and, therefore, it can be inferred that you took the delivery of such goods by deceiving my client(s) when you issued the cheque knowing fully well that you had insufficient funds in your account to honour the same.

9. That it is now clear that your intentions were not good when you issued the above stated cheque 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 with the result that the cheque stood dishonoured.

10. That as the cheque is 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 and 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 to my client(s) the amount for which the cheque so dishonoured was 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 have definite instructions from my client(s) to take appropriate legal action, civil as well as criminal, particularly under section 138 of the Negotiable Instrument 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 truly,

Sd/-

(Advocate)