Notice By An Individual Payee To The Individual Drawer When One Cheque Is Dishonoured With The Endorsement On The Return Memo As "stop Payment Advice" Or "payment Countermanded By The Drawer" 98 Legal Draft Template

1. That as you know that I am running the business of Brass Rods (hereinafter called goods) and I am the main stockist and dealer of the same. I am doing the business of dealing in Brass Rods in my personal name.

2. That you have been purchasing the said rods from me since……….. (give the date of first dealing or the estimated period of relationship) and due to the faith I reposed in you, I started allowing you to take the delivery of goods from me 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 to the tune of Rs. ……….. (In Words……….) vide invoice No. ……………., dated …………., with the Form No. ST-35 due and all documents sent directly.

4. That against the above said invoice you issued me a cheque bearing No. ……………, dated……………, drawn on ………………… (Name of the bank on which the cheque is drawn) at the time of delivery of goods promising that on the presentment of the said cheque it will be honoured.

5. That the above stated cheque has been dishonoured on its presentment with the endorsement “Stop Payment Advice” or “Payment Countermanded by the Drawer” on ………. (Date) vide Returning Memo No……….. of which I got the information on ……….. (Date) from the bank. That the cheque is in fact dishonoured for the reason of “insufficiency of funds” and for your failure to arrange with your bank for the said sum of money. Had I known that on its presentment the cheque so issued would be dishonoured I would never have delivered those goods.

6. That in all, the cheque which was issued by you in discharge of your liability/debt has been dishonoured for the reason of insufficiency of funds irrespective of the endorsement on the returning memo.

7. That thereafter I have been running from pillar to post to contact you but you have been avoiding the same.

8. That now I have understood that you issued the cheque to me against the delivery of goods for the amount which you never had in your account at the time of issue of cheque and therefore it can be inferred that you took the delivery of such goods by deceiving me when you issued the cheque knowing fully well that you had insufficient funds in your account to honour the same.

9. That it is now clear that your intentions were not good when you issued the above stated cheque as you had issued the cheque for the amount which you did not have in your account nor any arrangement had been made for such amount with the result that the cheque stood dishonoured.

10. That as the cheque is dishonoured for the reason of “insufficiency of funds” you may be held liable, civilly as well as criminally, particularly under section 420 of the Indian Penal Code, 1860, section 138 of the Negotiable Instruments Act, 1881 as amended upto date as also under Order XXXVII of the Code of Civil Procedure, 1908 and for this purpose this mandatory notice is served upon you.

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 24% per annum which comes to Rs………. and Rs…………… towards the cost of this notice, within a period of 15 days from the date of receipt of this legal notice, failing which I am determined to take appropriate legal action, civil as well as criminal, particularly under section 138 of the Negotiable Instruments Act, 1881 as amended upto date, section 420 of the Indian Penal Code, 1860 and Order XXXVII of the Code of Civil Procedure, 1908. You shall be held responsible for the costs and consequences for which please take this notice.