STATUTORY NOTICE Under SECTION 138 of Negotiable Instruments Act 1881

ADVOCATE NAME:…………..

ADDRESS OF ADVOCATE: ……………….

CONTACT NO. OF ADVOCATE:…………………

 

REF NO………………..

DATED: 15TH MAY, 2021

REGISTERED A.D.

TO,

1……………………………

2……………………………

SUBJECT: LEGAL NOTICE UNDER SECTION 138 OF NEGOTIABLE INSTRUMENT ACT, 1881 REGARDING DISHONOUR OF CHECQUE DUE TO INSUFFICIENT FUNDS

Dear Sir,

Under the instruction and authority from my client, Mr. ABC having their office at……………, I serve upon you the following notice of demand under Section 138 of the Negotiable Instrument 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 a 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 unpaid by the bank due to insufficient funds.
  6. That thereafter in spite 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 up to 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,

 

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