Notice by an advocate on behalf of an individual payee to the individual drawer when there is some claim also other than that as arose out of issue of post-dated cheque and the cheque has been dishonoured more than once

Name : ……………………
            ……………………
Office: ……………………
            ……………………
Residence: ……………………
            ……………………
Date :   ……………………
Regd. A.D./U.P.C

To

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

Sir,

Please take the following legal notice for and on behalf of  my client(s) M/s. …………………….. (Name and address of business).

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

2. That you have been purchasing the said Bales of Cotton from my client since………. (give the date of first dealing or the estimated period of relationship) and due to the faith my client reposed in you, he started allowing  you to take the delivery of goods from him against the issue of post-dated 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 Form	
(i)				
(ii)				
(iii)				
(iv)				

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

Cheque 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 favour of my client from you.

6. That above said post-dated cheques were issued at the time of delivery of goods promising that on due 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 when presented on their maturity, were dishonoured with the endorsement “Refer to Drawer” on …………. (Date) vide Returning Memo No. ……….. ,……………., …………..., ……………of which my client got the information on …………….(Date) from the bank. However, when my client informed about the same to you personally you requested him to present again the same cheques after a week’s time. My client did so but in vain as this time also the cheques were dishonoured with the endorsement “Refer to Drawer”. This was for the third time when my client presented the above stated cheques on your request which were again dishonoured for the same reason. Had my client known that on its presentment the cheques so issued would be dishonoured, they would never have delivered those goods. in fact the cheques were dishonoured for the reason of insufficiency of funds in your account and you failed to arrange the said amount with your banker irrespective of the endorsement on the return memo.

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

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

10. That having understood that you issued the post-dated cheques to my client against the delivery of goods for the amount which you never had in your account at the time of issue of cheques nor you intended to deposit or arrange for the same at the time of maturity of the said cheques and, therefore, it can be inferred that you took the delivery of such goods by deceiving my client when you issued the post-dated 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 nor you intended to make the balance in your account sufficient so that the cheque on its due date gets honoured.

11. That it is now clear that your intentions were not good when you issued the abovestated 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 cheque stood dishonoured.

12. 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 the amount of Rs. ………….for which the cheque so dishonoured were issued 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 have definite instructions from my client to take appropriate legal action, Civil as well as criminal, particularly under section 138 of the Negotiable Instrument 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/-

(Advocate)
*