Legal notice under Section 138 NI Act for dishonour of cheque repayment of friendly loan
Cites the IPC, CrPC or Evidence Act. For matters from 1 July 2024, use the BNS, BNSS or BSA.
0 of 43 blanks filled
REGD. POST / WHATSAPP
NOTICE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881
TO,DATE: Date of notice
Ms. Addressee's name
D/o Sh. Addressee's father's name
R/o Addressee's address
Addressee's address line 2
Mob. No. Addressee's mobile number
LEGAL NOTICE
Dear Ma'am,
Under the instructions of and on behalf of my client, Mrs. Client's name, W/o Sh. Client's husband's name, R/o Client's address (hereinafter referred to as "my client"), I do hereby serve upon you the following legal notice:
1.That my client is the Proprietor of M/s. Client's firm name and is carrying on business in security services, sanitary pads, grocery items and the like at the above-mentioned address.
2.That you, the above-named addressee, and my client have known each other for the past few years and have developed cordial and friendly relations with each other.
3.That in the month of Month in which the loan was requested, Year of loan, you, the above-named addressee, requested my client to advance a personal loan of Rs. Amount of loan (₹)/- (Rupees Amount of loan in words only) for a period of Agreed loan period. My client, in view of the cordial past relations with you, agreed to advance the said friendly loan.
4.That my client advanced the said loan amount to you, the addressee, on different occasions, i.e., on Date of first cash payment a sum of Rs. Amount of first cash payment (₹)/-, again on Date of second cash payment a sum of Rs. Amount of second cash payment (₹)/-, and on Date of third cash payment a sum of Rs. Amount of third cash payment (₹)/-, in each case in cash. At that time, you, the addressee, handed over to my client a post-dated cheque bearing No. Cheque number drawn on Drawee bank name Bank, Drawee bank branch Branch, Sector-Drawee bank sector number, towards the principal amount, and mentioned on the cheque a date falling after the expiry of the agreed loan period, i.e., Cheque due date (day).Cheque due date (month).Cheque due date (year). In the mutual understanding, you, the addressee, assured my client that you would repay the said amount of Rs. Total loan amount (₹)/- (Rupees Total loan amount in words only) within the agreed period, and believing upon your assurances, my client reposed faith in you and waited for the repayment of the said loan amount of Rs. Total loan amount (₹)/- That after the expiry of the agreed loan period, my client requested you, the addressee, to repay the loan amount, but you, the above-named addressee, orally assured my client every week that you would pay the said amount in the following week. Having cordial and friendly relations with you, my client believed your assurances and reposed faith in you. After repeated persuasions by my client, in the first week of Month of deposit assurance, Year of deposit assurance, you, the addressee, requested my client that the cheque in question be deposited only after the second week of Month after which cheque to be deposited, Year of cheque deposit assurance, and assured my client that the same would be honoured by the bank at the time of its presentation.
5.That you, the above-named addressee, in lieu of discharging your liability, issued the cheque in favour of my client, drawn on Drawee bank name Bank, Drawee bank branch Branch, Sector-Drawee bank sector number. The details of the cheque are as follows:
| S.No. | CHEQUE NO. | AMOUNT | DATED |
|---|---|---|---|
| 1. | Cheque number | Rs. Amount of cheque (₹)/- | Date of cheque |
6.That even at the time of issuance of the cheque and while handing over the same to my client, you, the above-named addressee, categorically represented to my client that the cheque shall be duly encashed by your banker whenever presented to it for encashment. You, the addressee, clearly represented at that time and gave the impression and understanding to my client that the cheque would be honoured by your banker.
7.Accordingly, my client presented the said cheque for encashment through her banker, i.e., Client's bank name Bank, Client's bank branch Branch. However, to the utter shock and surprise of my client, the said cheque was returned unpaid to my client with the remarks "Funds Insufficient" vide the bank's return memo dated Date of bank return memo, and my client was informed of the same by her bank.
8.That after receiving back the dishonoured cheque in question, my client attempted to contact you, the addressee, on numerous occasions to apprise you of the fact of dishonour of the cheque; however, you, the addressee, paid no heed to my client's requests and instead put off the matter on one pretext or the other. The loan amount therefore remains unpaid.
9.That my client has requested you, the addressee, on numerous occasions to pay the loan amount to my client; however, you, the addressee, in one way or the other, rebuffed my client's requests for payment of the loan amount. This conduct demonstrates your dishonest intentions.
10.That my client has been regularly attempting to contact you, the addressee; however, all such requests of my client have gone in vain. It is pertinent to mention that, in view of the friendly relationship with you, the addressee, my client had earlier chosen not to resort to any legal remedy, trusting that the due amount would be paid by you; however, your conduct shows that you, the addressee, harboured mala fide and malicious intentions from the very outset.
11.That the facts emerging from the above clearly show that you, the above-named addressee, have cheated my client with dishonest and mala fide intentions and ulterior motives, and have committed the offence of cheating and criminal breach of trust, as well as an offence under Section 138 of the Negotiable Instruments Act, rendering yourself liable not only to pay twice the amount of the aforesaid cheque as compensation but also to imprisonment for a term which may extend to two years, as provided under the said Act, besides the other offences committed under the provisions enumerated in the Indian Penal Code.
12.That by your aforesaid conduct, it is clear that even at the time of issuance of the cheque, you harboured mala fide intentions and intentionally failed to honour the payment of the said cheque, thereby causing wrongful loss to my client and wrongful gain to yourself, and thereby committing an offence under Section 420 of the Indian Penal Code.
You are, therefore, hereby called upon, by virtue of the present notice, to make the payment of Amount demanded (₹) (Rupees Amount demanded in words only) towards the dishonoured cheque, together with Rs. Cost of notice (₹)/- towards the cost of this notice, within a period of 15 days from the date of receipt of this notice, failing which I have clear instructions from my client to initiate proceedings against you before the competent court of law for recovery of the said amount as well as for your prosecution, in which event you shall be held liable and responsible for all costs, risks and consequences, which please note. A copy of this notice has been retained in my office for further reference and action.
Copy retained.
(Advocate's name)
Advocate