Notice by advocate on behalf of drawer to the drawee bank for the wrongful dishonouring of cheque issued for the application money of the shares, 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 issued for the application of shares

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 ……………………….. …………. (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 got the same dishonoured for the reason of “insufficiency of funds” and the said reason was stated in the returning memo issued by you. The cheque was issued in the name of the aforesaid company as the application money for the shares applied for in the preference category and the same were allotted to all the applicants fully at a rate of Rs. ……………. whose market value is Rs. ………………….. It may further be noted that my client applied for …………….. shares (number of shares applied for)

5. That, therefore, you dishonoured the above stated cheque for the reason that amount standing to the credit of my client’s account was sufficient 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 amount to ‘deficiency in service’ on your part for the reason my client is a customer and consumer of your bank and you were bound to honour the said cheque in the absence of any justifiable reason for the dishonouring of the same.

7. That due to the wrongful dishonouring of the cheque for the reason of ‘insufficiency of funds’ my client could not get the allotment of the aforesaid shares which he would have definitely got allotted in his favour had the cheque so issued not been dishonoured wrongfully for the reason of insufficiency of funds in the account of my client.

8. That had my client got the allotment of the aforesaid shares, he must have earned a profit of Rs. …………….. which he failed to earn due to the gross negligence on your part in dishonouring the aforesaid cheque for no fault of my client.

9. That such conduct of yours in dishonouring the cheque for unjustifiable reason amounts to ‘deficiency in services’ rendered by you to your customers under the Consumer Protection Act, 1986.

10. That for the deficiency in the services on your part towards my client you are liable to pay compensation under the Consumer Protection Act, 1986.

I, therefore, hereby call upon you to pay Rs. …….. on account of above said loss 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 instructions 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 truly,

Sd/-

(Advocate)