In case of return of cheque due to insufficient fund in the account, a legal notice needs to be served to the drawer of the cheque. A Draft format of legal notice is shown here. The Legal notice should be served within the prescribed time. Sufficient time as prescribed in the Negotiable Instruments Act also to be allowed to the debtor to pay the amount of cheque and other expenses. If the accused did not pay the amount in the prescribed time, Complaint can be filed u/s 138 of Negotiable Instruments Act.
Draft
Format of Legal Notice
against return of cheque
Registered AD/Speed Post
Date:
Mr. ________________
Address____________
LEGAL NOTICE
Sir,
Under instructions and
authority from our client
M/s. ______________________
we serve upon you the
following legal Notice.
That our client is a Private
Limited Company engaged in
trading of Computers,
Laptops, Computer Parts and
Accessories the name of
_________________________________
having office at
____________________________________.
That in the year
_______________you have
approached our client
through E-mail communication
of your employee
__________________ to
purchase ________________for
your office. Subsequently
you have issued purchase
order dated
_________________amounting
to Rs. ______________for
_____________
That you have promised our
client to pay the cost of
the product in the form of
Current Dated Cheque as
mentioned in the purchase
order.
That our client had relied on your promise and as
instructed by you delivered the ___________ at your office
at _______________ vide Invoice No. __________dated
___________.
That you have issued Cheque
No. _____________dated ____________for Rs. _________/-
(Rupees ____________only) drawn __________________________
towards payment against the Invoice.
That the aforesaid cheques
No. _____dated ________for Rs. _______/- was presented by
our client M/s._____________________ on _____ to your
Bankers i.e. _____________________________________.
Our clients shock and
surprise the said cheque had been dishonoured by your
bankers with the reason "Fund Insufficient" which was
intimated to our client by their
________________________________ through their cheque return
memo dated ____________
That thereafter inspite of
many telephonic reminders by our client, you failed to make
the payment due to our client.
That now it is clear that
you had dishonest intention at the time of purchasing _____
from our client and deceived our client to the tune of
____________.
Our client states that you
have issued the above said cheques only with an intention to
cheat our client which amounts to an offence punishable
under section 138 of Negotiable Instruments Act.
Under the circumstances, we
call upon you to pay of Rs.____________ /- within a period
of 15 (fifteen) days from the date of receipt of this
notice, failing which our client will be constrained to take
legal action against you in a court of law for an offence
punishable under section 138 of Negotiable Instruments Act
for which you will be liable for all costs and consequences.
This is without prejudice to
all other legal rights and remedies available to our client
for the above-stated purpose.
You are liable to pay a sum
of Rs. __________/- as necessary cost and expenses of
sending the present legal notice to you.
Copy of this legal notice
is also kept at our office for further ready reference it
required in future.
For______, Advocates
_____________, Advocate
Partner
Section 138 of Negotiable Instruments Act
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