Cheque returned Notice
kamal Jangid
(Querist) 04 September 2009
This query is : Resolved
Dear Expert,
A cheque we presented twice and both the time returned by the bank due to unsufficient fund, now i talked to concern party but he is not interest to pay the amount.
Now i want to send a notice to party for this Please adivse me on the following:-
1) Is time limit is 30 days to send a notice from the date of returned cheque received from bank ?
2) After first notice we have to send any other notice if yes than time limit?
3) After final notice if payment not made by the party than time limit for us to file a case againest to them?
If a Format for notice is available with you than please forward.
Thanks & Regards
Kamal
A V Vishal
(Expert) 04 September 2009
1) Is time limit is 30 days to send a notice from the date of returned cheque received from bank ?
Ans: Yes, The payee or the holder in due course of the cheque has to give a notice in writing making a demand for payment of the said amount of money to the drawer of the cheque. Such notice must be given within 30 days of information from the bank regarding the return of cheque as unpaid.
2) After first notice we have to send any other notice if yes than time limit?
Ans. In case, you present it for second time, you need to send notice in case the cheque is dishonoured for insufficient funds.
3) After final notice if payment not made by the party than time limit for us to file a case againest to them?
Ans.Limitation for filing summary suit is three years from the date of cause of action which will be the date of dishonour of cheque.
A V Vishal
(Expert) 04 September 2009
Note: This is only a format for guidance, change it to suit the requirements and facts in your case
NOTICE UNDER NEGOTIABLE INSTRUMENTS ACT REGARDING DISHONOUR CHEQUE
REGISTERED A.D.
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._______
2. On delivery of goods above mentioned, you issued a cheque bearing no. ____ dated _________ for Rs._______drawn on ____ Bank.
3. 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_______.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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,
kamal Jangid
(Querist) 04 September 2009
Dear Mr. A.V. Vishal,
Thanks for your valuable input
its realy valuable for me.
Thanks & Regards
Kamals
Adinath@Avinash Patil
(Expert) 04 September 2009
Mr.Vishal is right.
There is no prescibed form of notice.
Vishal has given format that is correct& good.
