Legal notice under Section 138 of NI Act for dishonour of cheque
Cites the IPC, CrPC or Evidence Act. For matters from 1 July 2024, use the BNS, BNSS or BSA.
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ADVOCATE
Ch. No. Advocate's cheque number, Advocate's chambers address, Lawyer’s Chambers
Mob. No. Advocate's mobile number
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 residential address
Addressee's city/address line
Mob. No. Addressee's mobile number
LEGAL NOTICE
Dear Ma’am,
Under the instructions and on behalf of my client, Mrs. Client's name, W/o Sh. Client's husband's name, R/o Client's residential address, hereinafter referred to as “my client”, and under her instructions, 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 her business of security services and other items at the above 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 and year of loan request, you, the above-named addressee, requested my client to advance a personal loan of Loan amount in figures and words for a period of Agreed loan period, and my client, in view of the cordial past relations with you, agreed to advance the said friendly loan.
4.That my client paid you, the addressee, the said loan amount on different occasions, i.e., on Date of first loan payment a sum of Amount of first loan payment, again on Date of second loan payment a sum of Amount of second loan payment, and on Date of third loan payment a sum of Amount of third loan payment, by way of cash, and you, the addressee, handed over to my client the post-dated cheque bearing No. Post-dated cheque number drawn on Drawee bank name Bank, Sector-Bank branch sector number, Branch City of drawee bank branch, towards the principal amount, mentioning on the cheque a date after the expiry of the agreed loan period, i.e., Date mentioned on the cheque. In the mutual agreement, you, the addressee, assured my client that you would return the said amount of Loan amount in figures and words within the agreed period, and believing your assurances, my client reposed faith in you and awaited the return of the said loan amount. That after the expiry of the agreed loan period, my client requested you, the addressee, to return 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, and my client, having cordial and friendly relations with you and believing your assurances, reposed faith in you. After numerous persuasions by my client, in Period when addressee requested delayed deposit, you, the addressee, requested my client that the cheque in question would be deposited after Agreed period after which cheque would be deposited 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, Sector-Bank branch sector number, Branch City of drawee bank branch. The details of the cheque are as follows:
| S.No. | CHEQUE NO. | AMOUNT | DATED |
|---|---|---|---|
| 1. | Cheque number | Cheque amount in figures and words | Date mentioned on the cheque |
6.That even at the time of issuance of the cheque and while handing over the cheque to my client, you, the above-named addressee, categorically represented to my client that the cheque would be duly encashed by your banker whenever presented for encashment. That you, the addressee, clearly represented at that time and gave the impression and understanding to my client that the cheque would be honoured by the banker.
7.Accordingly, my client presented the said cheque for encashment with her banker, i.e., Payee's bank name Bank, Payee's bank branch name Branch. However, to the utter shock and surprise of my client, the said cheque was returned to my client with the remarks “Dishonour remark on bank memo” vide the returning banker’s memo dated Date of bank return memo, and the said information was received by my client from her bank.
8.That after receiving back the dishonoured cheque in question, my client tried to contact you, the addressee, numerous times to apprise you of the factum of dishonour of the cheque; however, you, the addressee, did not pay any heed to the requests of my client and, rather, put off the matter on one pretext or the other, and thus the loan amount still remains unpaid.
9.That my client has requested you, the addressee, numerous times to pay the loan amount to my client; however, you, the addressee, by one way or the other, have rebuffed the requests of my client qua the payment of the loan amount. This act shows your dishonest intentions.
10.That my client has been trying to contact you, the addressee, regularly; however, all such requests of my client have gone in vain. That it is pertinent to mention that my client, in view of the friendly relationship with you, the addressee, had earlier chosen not to resort to any legal mechanism, trusting that the due amount would be paid by you, the addressee; however, your conduct shows that you, the addressee, had mala fide and malicious intentions from the very start.
11.That the axiomatic facts emerging from the above clearly show that you, the above-named addressee, have cheated my client cleverly with dishonest and mala fide intentions and ulterior motives, and have committed the offence of cheating, breach of trust, and an offence under Section 138 of the Negotiable Instruments Act, 1881, making yourself liable not only for 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 as per the provisions enumerated under the Indian Penal Code, 1860.
12.That by your aforesaid conduct, it is clear that even at the time of issuance of the cheque, you had mala fide intentions and you intentionally did not honour the payment of the said cheque, and thus you have caused wrongful loss to my client and wrongful gain to yourself, thereby committing an offence under Section 420 of the Indian Penal Code, 1860.
You are, therefore, hereby called upon, by virtue of the present notice, to make the payment of the amount of Cheque amount in figures and words towards the dishonoured cheque, together with Cost of notice amount towards the cost of this notice, within a period of Payment deadline period from the date of receipt of this notice, failing which I have clear instructions from my client to proceed against you before the competent court of law for the 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