Lessee (plant And Machinery Loan) 114 - Legal Draft
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Notice by an advocate on behalf of a leasing and financing company for the issue of post dated cheques which on their presentment got dishonoured, to a company/lessee (Plant and machinery loan)
Name : ........................
........................
Office: ........................
........................
Residence: ........................
........................
Date : ........................
........................
Office: ........................
........................
Residence: ........................
........................
Date : ........................
Regd. A.D./U.P.C
To
1. ...................................... (Lessee)
.......................................
.......................................
2. Name .............................(Managing Director)
.......................................
.......................................
3. Name .............................(Concerned Officer)
.......................................
.......................................
4. Name .............................(Signatory Officer)
.......................................
.......................................
5. Name .............................(Guarantor)
.......................................
.......................................
Subject : Dishonour of Cheque
In Re .......................
Sir,In Re .......................
For and on behalf of my client(s) M/s. ............................... (Name and address of the leasing and financing company), I have to serve you with the following legal notice:
1. That as you know that my client(s) are running the business of leasing and financing of the equipment and motor vehicles.
2. That you have been getting financed a number of vehicles including the plant and machinery for your business proposes from my client(s) since.......... (give the date of first dealing or the estimated period of relationship) and due to the faith my client(s) reposed in you, they started allowing you the financing of your equipment and motor vehicles (commercial as well as non-commercial) on the basis of issue of post dated cheques with a Bond of Surety from your side to take the guarantee for the payment of instalments (hereinafter called the guarantor).
3. That besides other things for which you have paid for, you got financed the plant and machinery with the following description :
3. That besides other things for which you have paid for, you got financed the plant and machinery with the following description :
Invoice No.
Date of Invoice
Description
Amount
(i)
...............
...............
...............
...............
(ii)
...............
...............
...............
...............
(iii)
...............
...............
...............
...............
(iv)
...............
...............
...............
...............
4. That against the above mentioned purchase of financed plant and machinery, you have issued the cheques which were payable as against the monthly instalments with the following description :
Cheque No.
Date of Cheque
Amount
Drawee bank
(i)
...............
...............
...............
...............
(ii)
...............
...............
...............
...............
(iii)
...............
...............
...............
...............
(iv)
...............
...............
...............
...............
5. That out of the cheques issued by you as stated above, the following cheques were presented to the bank as they got matured, which got dishonoured, namely :
Cheque No.
Date of Cheque
Amount
Endorsement
(i)
...............
...............
...............
...............
(ii)
...............
...............
...............
...............
(iii)
...............
...............
...............
...............
(iv)
...............
...............
...............
...............
6. That above said cheques were issued at the time when you and my client entered into the agreement of lease where it was made to appear to my client that the cheques so issued would not be dishonoured on their due presentment.
7. That, however, the abovestated cheques were dishonoured on their presentment of which my client(s) got the information on............... (Date) from the bank. However, when my client(s) informed about the same to you personally you requested my client(s) to present again the same cheques after a week’s time. My client(s) did so but in vain as this time also the cheques were dishonoured for the reason of “insufficiency of funds in the account of the drawer” and in some cases other than this endorsement was made in the returning memo. However, the reason of dishonouring of each of the above stated cheques was, in fact, “insufficiency of funds”. This was for the third time when my client(s) presented the abovestated cheques on your request which were again dishonoured for the same reason. Had my client known that on their presentment the cheques so issued would be dishonoured, they would never have financed the plant and machinery.
8. That in all, the cheque which were issued by you in discharge of your liability/debt which have been dishonoured thrice for the reason of insufficiency of funds.
9. That thereafter my client(s) have been running from pillar to post to contact any of you but all of you have been avoiding the same.
10. That having understood that you had in connivance with each other cast the net so deliberately that you issued the cheques to my client(s) against the entering into the agreement of lease for the advancement of loan for the amount which you never had in your account at the time of issue of cheques and, therefore, it can be inferred that you got the plant and machinery financed by deceiving my client(s) when you issued the cheques knowing fully well that you had insufficient funds in your account to honour the same or the amount of the cheques exceeded the arrangement that you had made with your banker.
11. That it is now clear that your intentions were not good when you issued the above stated cheques as you had issued the cheques 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.
12. That as the cheques are 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 of Rs. .............for which the cheque so dishonoured were issued i.e., Rs. ............... and the balance due to the tune of Rs. ...............aggregating to 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, jointly as well as severally or be prepared to face legal action, civil as well as criminal, particularly under section 138 of the Negotiable Instrument 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 all the costs and consequences for which please take this notice.
8. That in all, the cheque which were issued by you in discharge of your liability/debt which have been dishonoured thrice for the reason of insufficiency of funds.
9. That thereafter my client(s) have been running from pillar to post to contact any of you but all of you have been avoiding the same.
10. That having understood that you had in connivance with each other cast the net so deliberately that you issued the cheques to my client(s) against the entering into the agreement of lease for the advancement of loan for the amount which you never had in your account at the time of issue of cheques and, therefore, it can be inferred that you got the plant and machinery financed by deceiving my client(s) when you issued the cheques knowing fully well that you had insufficient funds in your account to honour the same or the amount of the cheques exceeded the arrangement that you had made with your banker.
11. That it is now clear that your intentions were not good when you issued the above stated cheques as you had issued the cheques 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.
12. That as the cheques are 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 of Rs. .............for which the cheque so dishonoured were issued i.e., Rs. ............... and the balance due to the tune of Rs. ...............aggregating to 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, jointly as well as severally or be prepared to face legal action, civil as well as criminal, particularly under section 138 of the Negotiable Instrument 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 all the costs and consequences for which please take this notice.
Yours truly,
Sd/-
(Advocate)
Sd/-
(Advocate)