narainreddy (Lawyer) 15 August 2007

Notice on dishonour of cheque

To,

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 clientΓÇÖs 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.

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Reply Follow

5 Replies

yedhash (n/a) 02 September 2007

Thanks Mr.Redy. It will b useful for freshiers who deal in these cases.

Shaji Joseph (Lawyer) 03 September 2007

Good for beginners.

Nileshkumar Gandhi (n/a) 02 October 2007

"WE CAN FIND DIFFERENT DRAFTS FROM DIFFERENT EXPERIENCED LAWYERS,BUT WE CANNOT FIND DRAFTS HOW TO DEFEND OUR CLIENTS.ANYONE HAVE DRAFTS DEFENCING CLIENTS IN N.I Act 138,plz send.""Nileshkumar Gandhi"