DEMAND NOTICE FOR CHEQUE BOUNCE CASE

Date: XX.XX.2016

REGISTERED POST AD

To,

……………..

W/o ………

R/o……

SUBJECT: NOTICE UNDER SECTION 138 (B)/142 OF THE NEGOTIABLE INSTRUMENTS ACT IN RESPECT OF THE DISHONOUR OF CHEQUE NO. ….. FOR RUPEES ………. DATED ………. DRAWN ON …………………………………

DEAR …………,

This notice is being served to you on behalf of and under the instruction of my client, ……………….. is a company registered under Companies Act, 1956, -having its registered office at ………………….., Delhi, India, under the provisions of Section- 138 of the Negotiable Instruments Act, 1881 whereof you may be pleased to note:-

  1. That my client is engaged in disseminating higher education to the students.  It conducts …………….. Courses and other courses in banking, etc. at its various centers all over India.

  1. That you the addressee was working with my client at ……….. center as ‘………….’ since ………….. Your responsibility was collection of the fees from the student(s), remit to bank and reconcile the same to accounts department. However, you did not deposit the fee in my client’s account and thus you had defaulted with your duty.

  1. That in order to discharge your aforesaid liability, you the addressee issued cheques. The said cheque issued by you was towards the discharge of a part of your liability on account of dues. Though you the addressee had knowledge and purpose of issuance of the cheques and was well aware of the same.

  1. That you are liable for the acts of omission and commission punishable under the provisions of Negotiable Instrument Act, 1882.  

  1. That said cheque issued by you has not been honored by your Banker, “……………….,” and the same were returned unpaid by your abovementioned Banker on ……… for the reason “PAYMENT STOPPED BY DRAWER”. The details whereof are given herein below:

Cheque No.

Cheque Date

Cheque Amount (Rs.)

……

…………

……………..

  1. I herewith demand from you the addressee for payment of the said amount of Rs. …………. in lieu of the dishonored cheque, detailed hereinabove, within 15 days from the receipt of this notice under section 138 / 142 of the Negotiable Instruments Act, any failure on your part would entitle my Client to proceed against you under Criminal Procedure Code, IPC and chapter XVII of the Negotiable Instruments Act.

  1. You shall ignore this notice at your own peril and cost. A copy of this notice is retained in my chambers for future action(s), if it so desired.

                                                                                  ADVOCATE