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Notice Under Negotiable Instruments Act Regarding Dishonour Cheque Legal Draft Template

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Format Word Document
File name NOTICE UNDER NEGOTIABLE INSTRUMENTS ACT REGARDING DISHONOUR CHEQUE.doc

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NOTICE UNDER NEGOTIABLE INSTRUMENTS ACT REGARDING DISHONOUR CHEQUE

To,

Sh.(Name & Address)

________________

Sub:- Notice under Section 138 of the Negotiable Instruments Act for

Cheque Dishonoured due to insufficient funds.

Dear Sir,

Under instructions and authority from our client M/s. ________ having

their office at _________, we serve upon you the following notice of

demand under Section 138 of the Negotiable Instruments Act.

  1. That your business concern M/s _______ had purchased from my client

goods (Name and brief description of goods) vide their invoice bearing

no. ___ dated ________ for Rs._______

  1. On delivery of goods above mentioned, you issued a cheque bearing

no. ____ dated _________  for Rs._______drawn on ____ Bank.

  1. That when the aforesaid cheque was presented by our client M/s.

____ to your Bankers i.e. ________ the same was returned unpaid by the

Bank with the remarks/reasons "Insufficient Funds". This fact was

brought to your notice by our client vide letter dated_______.

  1. That in reply to our client’s letter, you sent a letter dated ____

requesting him to deposit the cheque again with banker and assured him

that they will be cleared this time.

  1. My client again presented your above mentioned cheque with its

bankers, this time again cheque was returned un-paid by the bank due

to insufficient funds.

  1. That thereafter inspite of many telephonic reminders and personal

visits by the representative of our client to your office, you failed

to make the payment due to our client.

  1. That on account of the above facts, you are liable to be prosecuted

under section 138 of the Negotiable Instrument Act, 1881 as

amended upto date under which you are liable to be punished with

imprisonment which may extend to one year or with fine which may

extend to twice the amount of cheque or with both.

  1. Under the circumstances, we call upon you to make the payment

of Rs. _____ being the principal amount of the aforesaid cheque along

with interest @ ____ % per annum till the time of actual payment

within a period of 15 (fifteen) days from the date of receipt of this

notice, failing which we will be bound to take further necessary

action under the provisions of Negotiable Instrument Act, 1881 against

you in the competent court of law at your risk and cost.

This is without prejudice to all other legal rights and remedies

available to our client for the above-stated purpose.

Kindly take notice.

Date:____________

Yours faithfully,

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