Notice by advocate on behalf of drawer to the drawee bank for the wrongful dishonouring of cheque, under Consumer Protection Act, 1986

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

To

1. Bank …………………………(Head Office)
Address…………………………
…………………………………

2. Bank ………………………..(Branch Office)
Address…………………………
…………………………………

Subject : Wrongful dishonouring  of Cheque
Sir,

Under instructions from and on behalf of my client M/s. ………………………. (Name and address), who are the account holder in your bank vide Account No. …………. I have to serve you with the following notice.

1. That as said above, my clients are having a Current Bank Account with cheque book facility with you.

2. That on …………… (Date), my client issued a cheque upon you for a sum of Rs. ……… and the cheque was bearing No. ………… The said cheque was drawn in favour of Mr. …………. (Payee).

3. That as the cheque was issued for a sum of Rs. ………………, my client was having in his account more sum than the aforestated cheque issued for.

4. That to the utter dismay of my client the payee, on presentment of the cheque, the same was dishonoured for the reason of “insufficiency of funds” and the said reason was stated in the returning memo issued by you.

5. That, therefore, you dishonoured the above stated cheque for the reason the amount standing to the credit of my client’s account was insufficient to honour the cheque and it exceeded the arrangement made for by the drawer, whereas sufficient funds were lying to the credit of my client’s account.

6. That in all, such conduct of yours amounts to gross negligence on your part and also amounts to ‘deficiency in service’ on your part for the reason that my client is a customer of your bank.

7. That due to the wrongful dishonouring of the cheque for the reason of ‘insufficiency of funds’ the payee has sent my client a legal notice under section 138 of the Negotiable Instruments Act, 1881 for no fault on the part of my client.

8. That my client also has got developed bad relations with the payee which has affected the business of my client adversely and in all has resulted into financial losses to the tune of Rs. ……………

9. That the wrongful dishonouring of the cheque also has earned bad name for the business of my client and thus has affected the goodwill of the business of my client. The loss on this account is estimated at Rs. …………

10. That as the cheque is dishonoured for the reason of “insufficiency of funds”, for no fault on the part of my client, he should be indemnified for all the liabilities, costs and consequences that may arise due to the litigation started by the payee under the Negotiable Instruments Act.

I, therefore, hereby call upon you to pay Rs. …………… on account of loss of  business, Rs. …………. on account of the loss of goodwill, and Rs. ……………. for the mental pain and agony that my client has gone through, together with Rs………….. towards the cost of this notice, within a period of one month from the date of receipt of this legal notice, failing which I have definite instruction from my client(s) to take appropriate legal action particularly under the Consumer Protection Act, 1986. You shall be held responsible for all the costs and consequences for which please take this notice.

Take further notice that in future also such type of dishonouring should not repeat, which would make you liable to not only civil but also to the criminal legal consequences.

Yours faithfully,

Sd/-

(Advocate)