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 and issued the cheques 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. 

6. That in fact you issued the above stated cheques in spite of knowing fully well that you have already got your account closed. Thus, you issued the cheques for which at the time of issue, no account existed, deliberately for the purpose of deceiving my client.

7. That the cheques were issued by you so that my client could deliver you the possession of the goods purchased by you.

8. That, had my client known that the cheques you issued would not be honoured, for any reason whatsoever, he would not have delivered the goods to you.

9. That in all, the cheques which were issued by you in discharge of your liability/debt which have been dishonoured for the factual reason of closer of your account much before you issued the cheques.

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

11. That now my client has understood that you issued the 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 and, therefore, it can be inferred that you took the delivery of such goods by deceiving my client when you issued the cheques knowing fully well that you had closed your account and at the time of issue of such cheques the account did not in fact exist.

12. 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 had already closed.

13. That as the cheques against the account which already is closed with the motive of taking delivery of goods by deception, amounts to the offence of cheating under section 420 of the Indian Penal Code, 1860. 

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 from my client to take appropriate legal action, civil as well as criminal, particularly under 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)