Notice Under Negotiable Instruments Act Regarding Dishonour Cheque Legal Draft Template
| Category | Deeds |
| 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.
- 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._______
- On delivery of goods above mentioned, you issued a cheque bearing
no. ____ dated _________ for Rs._______drawn on ____ Bank.
- 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_______.
- 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.
- 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.
- 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.
- 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.
- 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,