Q: Draft a notice by a sole Proprietor/ Partner of a Firm/Director of a Company regarding Dishonour of Cheque ?

A Notice by a Sole Proprietor/Partner of a Firm/Director of a Company regarding Dishonour of Cheque

 (To be sent within thirty days of the receipt of information from the bank regarding the return of the cheque as unpaid) 

From 

.....................................

 ...................................... 

To 

...................................... 

....................................

 Dear Sir(s),

 I have to serve the following notice on you being the sole Proprietor of the firm ................. /as the Partner of the firm ............. /being the Managing Director of the Company ...................... carrying on business at ............. under section 138 of the Negotiable Instruments Act, 1881. 

1. That against the goods supplied by us to you and you issued a cheque in our favour with the following particulars: 

(i) Cheque No. .............. (ii) Date ..................... (iii) Amount ................... (iv) Drawn on ............. 

2. That the said cheque was sent by us for collection through our bankers ................. but we are surprised to find that the same has been returned unpaid by your bankers on account of insufficiency of funds in your account with the endorsement ”Refer to drawer” since you had failed to provide sufficient funds in your account. 

3. That the dishonour of the cheque in the aforesaid manner clearly reflects your unpragmatic approach in the matter and is otherwise unwarranted. 

4. That by dishonour of the cheque as aforesaid, you have made yourself liable to be prosecuted under the provisions of the Negotiable Instruments Act, 1881 and you are hereby to take notice under section 138 of the Negotiable Instruments Act to pay the aforesaid amount of Rs .......... being the amount of the cheque alongwith bank charges within 15 days of the receipt of this notice by you, failing which I/ we shall be proceeding under the Indian Penal Code, 1860 and under the provisions of the Negotiable Instruments Act, 1881 against you under which you may be punished by imprisonment for a term of two years and with fine which may be to the extent of twice the amount of the cheque or with both. You are also required to pay for the legal costs incurred by me/ us in the matter. 


Yours faithfully, 


Place ...........................

Date ............................ 

Signature

Comments

Post a Comment

Popular posts from this blog

Q: What is the significance of issuing account payee cheque?

Ans: While issuing the cheque, a drawer should draw two parallel lines on its left side and should write 'account only' in between them. By doing this, the cheque becomes an account payee cheque and the payment will be made only in the bank account of the payee. In case of any type of fraud, the payee can be traced. Having the above- mentioned precautions, a drawer can be avoided from fraud to a great extent.
Read more

Q: How would section 208, 209 and 210 of IPC be implemented in dishonour of cheque ?

Ans: A and B collude together and A issues the cheque for X Amount, which gets dishonored.  B files the complaint under S.138, and without proving the liability gets the benefit of presumption under S.139, now both A and B enact the drama of compounding under S.147 of NI Act, matter closed, but in principle A has violated IPC S.208 and S.210 and B has violated IPC S.209. So, if rightly B is asked to prove the entitlement to become the holder, before presumption can be granted to him, surely he would fail and lawfully both A and B can be prosecuted under IPC S.208, S.209 and S.210 if required.
Read more

Q: What are the other illustrations of cheating?

Ans: Illustrations: 1. There are two persons A and Z. A exhibits the false sample of an article to Z and intentionally makes Z believe that the article corresponds with the sample. A here induces Z to buy and pay for the false sample of the article. A cheats Z. 2. A, by pledging as diamond articles which he knows are not diamonds, intentionally deceives Z, and thereby dishonestly induces Z to lend money. A cheats.
Read more