Notice by an advocate on behalf of 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,

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 Brass Rods (hereinafter called goods) and my client 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 rods 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 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 :

Cheque 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 their presentment the cheques will be honoured.

5. That the above stated cheque has been dishonoured on their presentment with the endorsement “Account Closed” on …………. (Date) vide Returning Memo No. ……….., …………, …………, …………, …………. of which my client got the information on …………….(Date) from the bank. That in fact you did not have sufficient funds in your account to honour the cheques you had issued and to avoid the liability under section 138 of the Negotiable Instrument Act, 1881 as amended upto date, you got your account closed before my client could present the same for encashment. Had my client known that on their presentment the cheque so issued would be dishonoured, my client would never have delivered those goods.

6. That in all, the cheque which was issued by you in discharge of your liability/debt which has been dishonoured for the reason of insufficiency of funds.
 
7. That thereafter my client have been running from pillar to post to contact you but you have been avoiding the same.

8. That now my client has understood that you issued the cheque to him 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 him  when you issued the cheque 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 cheque 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 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 cheque is 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 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 for which the cheque so dishonoured was issued i.e., Rs. ………………, together with interest calculated at the rate of …..% per annum which comes to Rs. …………… and Rs. ……………… towards the cost of this notice, within a period of ……. days from the date of receipt of this legal notice, failing which I have definite instructions 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 faithfully,

Sd/-

(Advocate)